Navistar and Ford reach new business agreement
| April 01, 2009 |
Navistar International and Ford Motor Company have reached an agreement that will restructure the companies ongoing business relationships and settle existing litigations between the two. Part of the agreement will end the current diesel engine supply agreement on December 31, 2009. In spite of this the companies will maintain their collaboration on other initiatives such as the existing Blue Diamond Truck and Parts joint ventures. Additional equity in the Blue Diamond joint ventures will be acquired by Navistar as well as parts support for a variety of Ford products including Ford’s PowerStroke Diesel-equipped trucks. The two companies will also continue their diesel engine supply relationship in South America. Ford will make a payment to Navistar as a result of this agreement.
“We are pleased to have reached an agreement with Navistar that we believe is in the best interest of both companies,” says Mark Fields, Ford’s president of The Americas. “This agreement comprehensively addresses our business relationship with Navistar and will help both companies focus on meeting the needs of our current and future truck customers.”