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AMERICA 123 · 02-29-2008, 02:42 AM

www.chicagotribune.com/business/chi-nav-f-navistar-sues-ford-engine-feb28,0,7205874.story
chicagotribune.com

Navistar refiles suit over engine contract against Ford

By James P. Miller
Tribune staff reporter
1:27 PM CST, February 28, 2008

Navistar International Corp. resumed its high-stakes legal fight with customer Ford Motor Co., by re-filing a lawsuit that alleges the auto maker is planning to violate a supply agreement by making its own diesel engine for Ford pickup trucks.

Warrenville-based Navistar, while best known as a maker of medium and heavy-duty trucks under the International brand, is also a leading maker of diesel engines. For decades, in fact, It has been Ford's sole supplier of diesel engines for the Detroit company's heavy-duty pickups.

Over the past year, however, the relationship has soured, and the two have been squabbling on two different fronts.

Navistar filed a lawsuit in June of 2007, alleging that Ford intends to make a diesel engine on its own, with a design that Navistar engineers created at Ford's request. That suit said Ford appears to be planning to produce in North America a smaller version of an engine it makes in Britain for sale in Europe.

But, Navistar's suit said in June, Ford will be using a design that Navistar designers had helped Ford create, in what the two companies labeled the "Lion project." The two companies had agreed Ford would build the proposed Lion engine at a factory in England under license from Navistar, but that Navistar would make the engine if Ford ever began producing the Lion engine in North America.

The suit alleged Ford is using the Lion design to make a 4.4 liter diesel engine that it intends to begin producing in North America – at a plant in Mexico -- by late 2009 or 2010. Doing so would be a breach of contract, Navistar claimed.

The original suit, filed in Cook County Circuit Court, was dismissed by Judge Dennis Burke, who said both sides should pursue mediation of the dispute. If mediation didn't yield a resolution, he said, Navistar could re-file.

On Thursday, the truck and engine maker said it has re-filed the suit, and asserted that "Ford cannot manufacture the engine without violating its contract with Navistar."

At the time Navistar filed the original suit over the "Lion" engine, Ford denied any wrongdoing and said the suit is "without merit."

jpmiller@tribune.com

Copyright © 2008, Chicago Tribune

02-29-2008, 02:42 AM	#98 (permalink)
AMERICA 123 7.0 Liter LS7 V8 Join Date: Aug 2007 Drives: The bailout pkg Posts: 4,721	Re: [FORD]: NEW Scorpion V8 Diesel Information (post 63 - prelim power numbers) www.chicagotribune.com/business/chi-nav-f-navistar-sues-ford-engine-feb28,0,7205874.story chicagotribune.com Navistar refiles suit over engine contract against Ford By James P. Miller Tribune staff reporter 1:27 PM CST, February 28, 2008 Navistar International Corp. resumed its high-stakes legal fight with customer Ford Motor Co., by re-filing a lawsuit that alleges the auto maker is planning to violate a supply agreement by making its own diesel engine for Ford pickup trucks. Warrenville-based Navistar, while best known as a maker of medium and heavy-duty trucks under the International brand, is also a leading maker of diesel engines. For decades, in fact, It has been Ford's sole supplier of diesel engines for the Detroit company's heavy-duty pickups. Over the past year, however, the relationship has soured, and the two have been squabbling on two different fronts. Navistar filed a lawsuit in June of 2007, alleging that Ford intends to make a diesel engine on its own, with a design that Navistar engineers created at Ford's request. That suit said Ford appears to be planning to produce in North America a smaller version of an engine it makes in Britain for sale in Europe. But, Navistar's suit said in June, Ford will be using a design that Navistar designers had helped Ford create, in what the two companies labeled the "Lion project." The two companies had agreed Ford would build the proposed Lion engine at a factory in England under license from Navistar, but that Navistar would make the engine if Ford ever began producing the Lion engine in North America. The suit alleged Ford is using the Lion design to make a 4.4 liter diesel engine that it intends to begin producing in North America – at a plant in Mexico -- by late 2009 or 2010. Doing so would be a breach of contract, Navistar claimed. The original suit, filed in Cook County Circuit Court, was dismissed by Judge Dennis Burke, who said both sides should pursue mediation of the dispute. If mediation didn't yield a resolution, he said, Navistar could re-file. On Thursday, the truck and engine maker said it has re-filed the suit, and asserted that "Ford cannot manufacture the engine without violating its contract with Navistar." At the time Navistar filed the original suit over the "Lion" engine, Ford denied any wrongdoing and said the suit is "without merit." jpmiller@tribune.com Copyright © 2008, Chicago Tribune __________________ In regards to the VOLT With a typical annual driving pattern < totaling 11,390 miles - including three 450 mile trips and a bunch of 40 mile plus per days > and assuming you only charge <once > per overnight: Vehicle ……………… Gallons per year Volt ………………….. 37 Prius ………………… 228 30 MPG car ………… 380 20 MPG car ………… 570 Dave G. Last edited by AMERICA 123 : 02-29-2008 at 04:48 AM.