Navistar idles plant during Ford dispute |
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Mon, 26 Feb 2007 18:58
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WARRENVILLE, Ill. (AP) - Navistar International Corp. said Monday it will idle a 1,200-worker Indianapolis factory because of an ongoing dispute with Ford Motor Co.The Warrenville-based truck and engine maker said Monday that Ford has 'stopped honoring' the terms of a contract for thousands of diesel engines used in the automaker's popular heavy-duty truck line.Navistar said in a statement that it pays suppliers and employees under contract terms and 'expects Ford to honor the terms of its agreement.'Spokesman Roy Wiley declined to elaborate and a spokeswoman for Ford did not immediately return a call seeking comment.The 4.6-liter Power Stroke is the only diesel engine used in Ford's heavy-duty trucks.In past years, Navistar plants in Indianapolis and Huntsville, Ala., made about 300,000 engines for Ford. But Wiley said that number has been cut dramatically because of Ford's financial problems.The Indianapolis factory made about 400 engines a day. Wiley said he did not know how long the shutdown would last.The Alabama plant will continue operating because it also produces engines for other companies, Wiley said.Last month, Ford sued Navistar, saying the company failed to comply with an agreement to share warranty costs. Dearborn, Mich.-based Ford also accused Navistar of 'unjustifiably' raising prices.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Fitch rates Navistar 'BB-' 