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Posted by Mike Levine | January 14, 2009

Ford and Navistar accept acclimatized a diffuse acknowledged altercation over agent engines.

The altercation started in January 2007 back Ford filed a accusation adjoin Navistar, arguing that Navistar unjustifiably aloft agent prices and had not been advantageous its allotment of adjustment costs for Power Stroke agent assurance claims.

Ford said it had spent $1 billion on aliment and recalls to fix problems with bequest 6.0-liter Power Stroke agent engines. Ford added arguable that its acquirement arrangement with Navistar accustomed it to debit Navistar’s invoices to balance those costs, which it had done up to $160 actor afterwards filing suit. In response, Navistar briefly chock-full aircraft Ford its new 6.4-liter Power Stroke agent engines and filed a countersuit gluttonous several hundred millions of dollars because Ford advised to acquaint a new agent agent that was advised by International Truck and Agent Corporation afore its joint-manufacturing acceding with Navistar asleep in 2011.

In a columnist absolution issued on Navistar’s website, Navistar states the two companies will end their accepted agent agent accumulation acceding able Dec. 31, 2009. Ford will pay an bearding bulk to Navistar, but both companies will abide to coact on a ambit of added initiatives activity forward.

Navistar will access its disinterestedness pale in the truck- and parts-marking company Blue Diamond, which produces Ford-branded F-650 and F-750 medium-duty bartering trucks in Mexico. Navistar will additionally accept a majority pale in Blue Diamond’s replacement-parts business. Both companies will abide their agent agent accumulation accord in South America.

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