The saga continues...opcorn: Navistar International Corp., a diesel-engine supplier to Ford Motor Co. for more than 25 years, accused the automaker of violating a contract by developing its own diesel for the F-150 pickup truck, Bloomberg News reported. Ford intends to produce the new 4.4-liter engine for 2009 or 2010 model-year vehicles, Navistar said in a statement last Wednesday. Navistar said it seeks "hundreds of millions" of dollars in damages in a lawsuit filed last Monday in Cook County Circuit Court in Chicago. Navistar's current contract with Ford runs through 2012, Bloomberg said. Navistar's lawsuit is "without merit," Ford spokeswoman Kristen Kinley said in an interview with Bloomberg. Ford filed suit in January in Oakland County, Mich., asserting Navistar failed to make payments under an agreement to share warranty costs on the Super Duty engine, Bloomberg said. Navistar suspended engine shipments in February, disrupting Super Duty production. The Michigan court on Feb. 28 ordered Navistar to resume sending engines. Ford and Navistar began talks to resolve the dispute, Bloomberg said. L&MT
