Ford and Navistar: Another Lawsuit Episode
Date: Jun 9th, 2007 2:15:01 am - Subscribe
Mood: shattered
This is not the previous news guys. This is another Ford and Navistar lawsuit episode.
We all know about what these two companies have been through tough times. Ford stopped receiving the engines from Navistar because of its unreasonable price increase. The domestic car maker then decided to cut off receiving engine parts for their vehicles. But then, Navistar was forced to file a lawsuit against Ford because of breach of contract. According to the engine maker, a contract was made between the two so Ford continues to receive the engines they made. After further interrogation, the jury has decided that Ford should continue receiving engines from the Navistar with the allotted price increase and the Navistar will continue to give Ford the engine they need for their car models.
After the agreement, everything goes well to both Ford and Navistar, until this day when Navistar was reported to file another lawsuit for Ford. What seems to be the reason?
According to Navistar International, the domestic car marker copied its very own designed engine. But that is not the end of it all - the engine manufacturer is asking for "hundreds of millions" for the compensation and the damages done to their company name. The lawsuit filed in Chicago tells that Ford is being accused for breaching the 2002 contract and that Navistar will be the one to produce the a 3.6-liter diesel engine also known as the Lion V-8 and this is as reported by Crain's Chicago Business.
Navistar invested a huge amount of $11 million on designing the particular engine that was built in Europe and will be used overseas but Ford has lost its interest on the engine. Because of the current cash-craving status of Ford, they could not afford to buy the engine so they decided to do the Lion V-8 themselves and they are planning on creating such an engine in its production plant in Mexico which would also be the production place for its Ford body parts and Ford bumpers. However, Ford denies the lawsuit. They say, "Entirely without merit."
Ford is facing another trial as they were sued by the Tongan prince's sons over the death of their father. Despite all the positive write ups about Ford, here is another bleak run in that will surely ruin the name of this US car maker. I just hope Ford will get out of this soon. Well all I can say is good luck and I hope you can make it Ford.
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