Navistar to Resume Production of Engines for Ford Under Temporary Court Order

Navistar International Corporation said today that it will resume production of Power Stroke diesel engines used by Ford Motor Company in its heavy-duty pickup truck line. The announcement is in response to a temporary order issued by Judge John J. McDonald of the Circuit Court of Oakland County, Michigan.

Judge McDonald issued the temporary order late Wednesday afternoon and scheduled a hearing for both companies Wednesday, March 7.

Under Judge McDonald’s order, Ford will be required to pay, without deductions, for all diesel engines it receives from International Truck and Engine Corporation, Navistar’s principal operating company.

“We have a great engine that has been met with very positive initial reviews from customers, Ford dealers and media, and we are anxious for it to get out into the marketplace,” said Jack Allen, president of International's engine group.

Navistar announced Monday that it was immediately suspending production of the new 6.4L Power Stroke diesel engine because Ford had stopped honoring the terms of agreement under which the engines were built.

International currently produces Power Stroke 6.4L diesel engines that meet 2007 emissions standards while increasing performance, durability and fuel economy at its engine plants in Indianapolis, Ind., and Huntsville, Ala.

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