Ford Motor Co. officials say the dispute with engine maker Navistar International Corp. will not affect supply of 6.4L PowerStroke diesels for use in '08 Super Duty F-Series pickups.
Ford alleges Warrenville, IL-based Navistar owes it money under an agreement to share engine warranty costs, which it says Navistar has not paid.
Ford also alleges engine prices escalated well beyond agreed-upon prices.
Ford is seeking reimbursement equal to what it says it overpaid and for financial obligations owed to it by warranty claims regarding the previous-generation 6.0L diesel engine.
Navistar says Ford's claims are “totally without merit,” and that it “intends to vigorously respond in court.”
The argument now is escalating, with Ford taking the unorthodox move of subtracting the amount of money it says Navistar owes it from the agreed-upon price for the diesel mills, a report in the Chicago Tribune says.
Navistar reportedly is threatening to stop supply of the engines until Ford pays the full amount.
Despite the controversy, a top Ford executive says he doubts Navistar will stop supplying the engines, but if it does, Ford has a contingency plan.
