Navistar Sues Ford, Again

Includes: F, NAV
by: SA Eli Hoffmann

Navistar International said Wednesday it filed yet another lawsuit against Ford Motor Co., seeking "at least hundreds of millions of dollars" in damages for copying a Navistar-designed engine. According to the lawsuit, Ford recently dusted off plans for a Navistar-designed diesel engine for its F-150 trucks, and plans to build its own 4.4-liter version of the engine by late 2009 or 2010 in violation of its contract with Navistar, which spent $11 million developing the next-generation diesel engine. The lawsuit is the latest tack in a dispute that began in January when Ford sued Navistar over warranty costs and engine prices related to the F-Series contract. Navistar briefly blocked diesel engine shipments to Ford, threatening to disrupt production of the Super Duty, one of Ford's most profitable vehicles. A judge eventually ordered Navistar to resume shipments while the case proceeds. In May, Navistar filed a $2-billion claim against Ford; it says the June 4 lawsuit is Ford 07 06 2007 Chart Navistar 07 06 2007 Chartseparate from previous litigation. A Ford spokeswoman said Navistar's claims are "entirely without merit" and that the company would fight them vigorously.

Sources: Navistar press release, Reuters, Crain's
Commentary: Are Domestic Auto Manufacturers Losing Consumer Interest?Notable Quotables From May's Light Vehicle Sales ReportDeath Pool in Detroit
Stocks/ETFs to watch: Ford Motor Co. (NYSE:F), Navistar International Corp. (NAVZ.PK)
Conference call transcript: Ford Motor Q1 2007

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