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Navistar seeks $2B in damages from Ford
The dispute between Navistar International Corp. and Ford Motor Co. ratcheted up Wednesday, as Navistar accused Ford of trying to develop its own diesel engine for pickup trucks and sought $2 billion in damages. In a release, Navistar said its contract to supply the Power Stroke diesel engine runs through 2012, but cited "indications that Ford plans to develop its own diesel engine for introduction prior to 2012."

Warrenville, Ill.-based Navistar has been supplying diesel engines for Ford's Super Duty F-series pickup trucks since 1979.

An amended counterclaim from Navistar's, filed Wednesday, stems from a lawsuit Dearborn-based Ford filed against the diesel-engine supplier in January. Ford claimed Navistar owed it for warranty costs. Navistar said the warranty claims are bogus and Ford was underpaying for engine shipments.

Navistar temporarily halted shipments of engines used on the profitable and popular Super Duty trucks. Ford later agreed to pay Navistar its asking price in return for continued shipments. Ford also repaid $80 million it debited from Navistar.

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