Ford and Navistar end 30 year deal


Navistar’s contract to supply diesel engines for the F-150 will end this year

Navistar’s contract to supply diesel engines for the F-150 will end this year

Enlarge Photo
Ford and engine supplier Navistar International have finally ended a dispute over the supply contract for a diesel engine that has been ongoing for several years. The two companies have reached a settlement that brings the legal fight to an end and effectively dissolves a partnership that has lasted almost 30 years.

In a joint statement, the two companies said they had reached an agreement to "restructure their ongoing business relationship and settle all existing litigation between the companies." The statement also said that Navistar's current contract to supply diesel engines to Ford would conclude at the end of this year.

As part of the settlement, Ford will also make an undisclosed payment to Navistar. The original contract dates back to 1979, Reuters reports.
The dispute started over an issue with the development of the next-generation F-150 pickup. Navistar claimed that Ford planned to produce a 4.4L diesel engine for the F-150 on its own, violating part of the original contract.

The two companies will, however, continue working together on a medium duty commercial truck project as well as the supply of engines in the South American market.

 
Follow Us

Commenting is closed for this article

Take Us With You!

 


 
© 2017 MotorAuthority. All Rights Reserved. MotorAuthority is published by Internet Brands Automotive Group. Stock photography by izmostock. Read our Cookie Policy.