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Navistar halts engine production on eastside

February 26, 2007

Navistar International Corp. has suspended production of diesel engines at its plant on Indianapolis’ eastside and at another plant in Alabama.

The decision stems from a lawsuit filed by Ford Motor Co. claiming Il
linois-based Navistar isn’t adequately sharing warranty costs for the engines, which are used in its lucrative Super Duty F-Series pickup trucks. Seven-hundred workers at the Indianapolis plant churn out 400 engines a day.

Navistar said last month the claims are without merit.

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