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Navistar and Ford Plan Diesel Engine Agreement

13 August 1997

Navistar and Ford Plan Diesel Engine Agreement

    CHICAGO, Aug. 13 -- Ford Motor Company and Navistar
International Corporation have reached tentative agreement
(subject to approval by the respective Boards) for Navistar to continue to
supply diesel engines for Ford's over 8500-lb GVW F-Series trucks and
Econoline vans.  Under the terms of the potential agreement, Navistar will
produce a newly designed and advanced technology engine for Ford.  The new 10-
year agreement would be effective beginning with model year 2003.

SOURCE  Navistar International Corporation