Navistar International is close to settling a dispute with Ford over the latter’s decision to postpone a V6 diesel engine line that Navistar had agreed to supply, Reuters reported.

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The news agency said that Navistar is seeking reimbursement from Ford to recover investment and development costs for the engine. Navistar recorded $170 million in one-time charges last year to write off pre-production and fixed asset costs related to the V6 engine launch.

“We are in discussions. We hope to have a successful conclusion soon,” Navistar spokesman Roy Wiley told Reuters, adding that an agreement with Ford was expected before the end of Navistar’s fiscal second quarter, which ends April 30.

According to Reuters, Navistar last month said it expected to record a loss in the second quarter of 25 cents to 30 cents a share, assuming it reaches a “favourable” agreement with Ford on compensation for the V6 programme.

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