Navistar To Resume Production Of  Diesel Engine For Ford

Decision comes after judge issues temporary order.

Navistar International said Thursday it will resume production of Power Stroke diesel engines used by Ford in its heavy duty pickup truck line.

Navistar said the announcement is in response to a temporary order issued by Judge John J. McDonald of the Circuit Court of Oakland County, Michigan. Judge McDonald issued the temporary order late Wednesday afternoon and scheduled a hearing for both companies Wednesday, March 7.

Under Judge McDonald’s order, Ford will be required to pay, without deductions, for all diesel engines it receives from International Truck and Engine Corporation, Navistar’s principal operating company.

“We have a great engine that has been met with very positive initial reviews from customers, Ford dealers and media, and we are anxious for it to get out into the marketplace,” said Jack Allen, president of International's engine group.

As reported, Navistar said Monday it was immediately suspending production of the new 6.4L Power Stroke diesel engine because Ford had stopped honoring the terms of agreement under which the engines were built.

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