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It was kiss-and-make-up time for Ford Motor Co. and International Truck and Engine Corp. as the two last month resolved a dispute over a discontinued light-vehicle diesel engine program and a newly built International engine-making plant in Huntsville, AL (see WAW — April '03, p. 13).

International announced it settled with Ford for “appropriate recovery of excess costs,” involved with the Huntsville plant, which was built largely to produce an all-new V-6 diesel that Ford last year cancelled. Neither Ford nor International gave details of the settlement.

International has a contract until 2012 to produce Ford's successful “Powerstroke” V-8 turbodiesel used in Ford medium-duty pickups and the soon-departing Excursion SUV. That engine is produced exclusively at International's plant in Indianapolis, IN, with versions used by International's Navistar brand — as well as the Ford/International Blue Diamond joint-venture.

Ford seems undecided about light-duty diesels in the U.S. Ford planned to install the now-discontinued International diesel in light pickups, the Expedition/Navigator SUVs and perhaps the Explorer. And the company said last year it plans to sell a diesel Focus in North America by 2005.

Now the V-6 program is scuttled, and Ford sources say the company is wavering on the Focus diesel. But at press time Ford advanced-technology chief Gerhard Schmidt reportedly said Ford is considering a 2.7L turbodiesel for the Explorer.

And at New York, the company withdrew from its pledge (made in 2000) to increase the fuel economy of its entire SUV fleet 25% by 2005; it might be presumed the cancelled diesel V-6 played prominently in that program.