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.
Go deeper with GlobalData
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.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
