Ford Plans Diesels, Navistar Says

Navistar International Inc. claims that Ford is working to develop its
own diesel engines to replace the Power Stroke diesels in its F-Series
Super-Duty pickups. Court papers filed by Navistar claim it learned from
suppliers that Ford intends to stop purchasing diesel engines from
Navistar after 2009, although a contract between the companies is
binding through July 31, 2012.

Ford had filed a lawsuit claiming Navistar owed money for warranty
repairs on the 6.0L Power Stroke diesels. Ford claimed that Super Duty
pickups with the 6.0L diesel could not be repaired, so it had to buy
back trucks.

Navistar says Ford intends to manufacture its own engines, but a
Ford spokesperson said there is “no basis” for Navistar’s allegations.

A trial date is slated for June 26, 2008.

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