Back in February, Navistar, which is the exclusive maker of diesel engines for Ford's Super Duty pickups for the last 25+ years, cut off supply to Ford over warranty issues ( more info) that Ford sued Navistar over in January. A week later, the engines were headed back to Ford after a judge told the two companies to work things out ( more info). Looks like that didn't happen.
Today, Navistar said it has filed an amended counter-complaint in the legal battle that seeks damages of more than $2 billion from the automaker, according to the Chicago Tribune. The reason: rumors that Ford is planning to develop its own diesel engines for introduction before 2012, the newspaper reports. if this happens, and Ford tries to end its current purchase contract before it expires in that year, Navistar will seek $2 billion in damages.