DETROIT — Just a few days after halting engine shipments to Ford, a Michigan judge has ordered Navistar International to restart engine production for its biggest customer.
Judge John J. McDonald issued a temporary restraining order which also orders the car company to pay for the engines without deductions — a move that for the time being puts the brakes to the ongoing feud between Ford and its light duty engine supplier.
A follow up hearing is scheduled a hearing for both companies on March 7.
Navistar said this week it was shutting down production of the Power Stroke diesel engine that it builds for Ford F-Series pickups because the carmaker has “stopped honoring the terms of agreement under which the engines were built.”
The companies locked horns over the price Navistar was charging Ford and the extent of Navistar’s financial obligations in warranty claims.
Ford took Navistar to Michigan court in January, alleging Navistar was in breach of contract. The carmaker then began withholding payment in order to recover funds it claims Navistar owes it for repair work under the warranty agreement.