Navistar, Caterpillar Settle Lawsuits, Expand Supply Agreement

avistar International Corp. and Caterpillar Inc. will expand upon their existing relationship as part of an agreement to settle all pending litigation between the two companies, Navistar said Thursday in a statement.

As part of the new supply agreements, which include on-highway truck engines, fuel injectors, remanufactured components and other products, Caterpillar Remanufacturing will act as the lead global remanufacturing service provider for International Truck and Engine Corp., Navistar said.

Caterpillar said that Navistar breached a 1998 contract by paying a lower price for fuel injectors than the companies had agreed upon and refusing to pay surcharges associated with ordering fewer of the units than planned, Bloomberg reported Friday.

While the companies did not disclose the financial terms of the settlement, Caterpillar said in a statement that it will receive an up-front cash payment and a three-year promissory note from Navistar.

Navistar is the parent of International Truck and Engine Corp., which makes trucks and engines.