Ford Motor Co. and Navistar International Corp. have reached an agreement to restructure their ongoing business relationship, settling all existing litigation between the companies.
Fleet Owner magazine reported that Ford and Navistar will end their current diesel engine supply agreement effective Dec. 31, 2009, but will continue to collaborate on a number of initiatives, the companies said. This will include the existing Blue Diamond Truck and Parts joint ventures, in which Navistar will acquire additional equity as a result of the agreement.
“Navistar and Ford benefited from a successful partnership that provided value to both companies for nearly three decades. However, it’s in our best interests to resolve our conflict and continue our relationship with each other in other areas,” said Dan Ustian, Navistar chairman, president & CEO. “The next phase of our relationship is consistent with Navistar’s strategy to diversify our customer base, while continuing to provide value to both companies through our existing joint ventures and our supply agreement in South America.”
“We are pleased to have reached an agreement with Navistar that we believe is in the best interest of both companies,” said Mark Fields, Ford 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.”