International engines will be delivered to Ford—for now

March 2, 2007
Navistar International Corp. said it will resume production of Power Stroke diesel engines used by Ford Motor Co. in its heavy-duty pickup truck line

Navistar International Corp. said it will resume production of Power Stroke diesel engines used by Ford Motor Co. in its heavy-duty pickup truck line due to a temporary order issued by Judge John J. McDonald of the Circuit Court of Oakland County, MI.

Navistar had suspended production of these engines on Monday in response to a dispute over Ford’s payment terms.

Judge McDonald ordered Ford to pay without deductions for all diesel engines it receives from International Truck and Engine Corp., Navistar’s principal operating company, Navistar noted.

“Due to the interruption of supply of the 6.4L diesel engine, production at [Ford’s Kentucky Truck Plant] is being impacted,” a Ford spokesman told Ward’s. “The plant will operate on limited shifts Thursday, not run on Friday and resume one shift of production on Monday.”

According to Ward’s,Reuters has reported that engine production at an International plant in Indianapolis, IN, is expected to be restarted by Monday.

Judge McDonald said the order will “preserve the status quo” until a final decision is reached, given that Ford’s reputation would suffer irreparable harm among its customers and related businesses if it fails to deliver its diesel-powered Super Duty.

The temporary order was issued on Wednesday. A hearing for both companies scheduled for March 7.

To comment on this article, write to Terrence Nguyen at [email protected]

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