Power Stroke production resumes, Ford and International reach temporary agreement

If you listen closely enough, you can hear the gargantuan "Whew!!!" from the glass house on Michigan Ave. Oakland County, Mich., Judge John McDonald has ordered International Truck and Engine to resume shipment of the 6.4L Power Stroke diesel engine that powers the uber-important Ford Super Duty pickup.

This whole mess started when Ford began debiting International's invoices to the tune of $125 million to help pay for expensive warranty costs incurred repairing the notoriously problematic last-gen 6.0L Power Stroke. As it turns out, Ford spent an estimated $1 billion on warranty costs due to a faulty fuel system on these engines supplied by International. For its part, International disputes the $1 billion figure and has refused to help foot the bill. Ford took action by filing a law suit and International retaliated by stopping production of the new 6.4L Power Stroke, which has resulted in the loss of 4,000 units of Ford's most profitable vehicle.

The temporary agreement calls for Ford to stop debiting International's invoices and actually pay the company. In return, the diesel engine supplier will resume shipments of the new 6.4L Power Stroke. The judge also ordered both sides to continue meeting in order to come up with a final solution, but that won't be easy since there's a lot bad blood between these two companies now. We don't know who's right in this case, but we do know this fire will likely flare up again.

[Source: Automotive News]

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