Navistar Will Continue To Ship Diesel Engine To Ford, For Now

Companies ordered to meet to resolve issue.

Navistar International said late Thursday it entered into a consent injunction with Ford and will continue to ship 6.4L Power Stroke diesel engines to the automaker.

Ford will pay, without deductions, for each engine.

Navistar suspended production on February 26 because Navistar said Ford had stopped honoring the terms under which the engines were built. Ford sought a temporary restraining order, and a judge issued an order on February 28 that required International to resume production and Ford to pay without withholding until a hearing was held.

On Wednesday the judge asked the two companies to continue discussion to determine whether an agreement could be reached prior to trial. The latest consent injunction supersedes the temporary restraining order and requires both companies to meet in an effort to resolve the dispute.

International Truck and Engine Corporation, Navistar’s principal operating company, has been the exclusive diesel engine supplier for Ford’s Super Duty pickup trucks since 1979 and last month launched a new 6.4L Power Stroke for Ford’s new Super Duty.