Wow, talk about a strained relationship! With so much money passing hands between Ford and Navistar, you might think they would find a way to negotiate a deal regarding their diesel engine partnership(s). You would be right, assuming you think that starting yet another lawsuit is a way to patch things up. That's right... another lawsuit. This one is still about diesel truck engines, but instead of the large 6.4 liter Power Stroke, this one cites a smaller 4.4-liter diesel engine slated for the F-150 truck in 2009 or 2010. Navistar has been Ford's long-time supplier of diesel engines that carry the "Power Stroke" moniker for Ford, and Navistar is claiming that if Ford goes to market with the 4.4-liter engine, it would constitute a breach of contract. At this point, it seems unclear whether Navistar is claiming to have designed the engine in question, or if it believes it had a contract to do so, but either way, things could get even messier between the two companies.

[Source: Automotive News (sub. req'd) via AutoblogGreen]

To recap: Ford started having problems with its (flame-throwing) Power Stroke engines from Navistar. Ford stopped paying Navistar for the engines, because it decided Navistar owed it for warranty work incurred from the last-gen Powerstroke diesel. Ford sued Navistar. Navistar stopped shipping engines. A Judge intervened, told Navistar to start shipping engines again and Ford to start paying. Ford started work on its own diesel engine. Navistar sued Ford for $2 billion. Navistar sues Ford again, this time for "hundreds of millions of dollars" – which is today's sad story. I think that about covers it.

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