Ford's woes cost Warrenville's Navistar $430 million

Navistar International Corp., the world's fourth-largest truckmaker, said it may record costs of as much as $430 million because of declining demand from Ford Motor Co. for diesel engines.

Most of the expenses, related to a foundry and an engine plant in Indianapolis and a factory in Huntsville, Alabama, will probably be recognized in the fourth quarter ended in October, the company said today in a U.S. regulatory filing. The costs would include a writedown of up to $385 million and other charges of as much as $45 million.

The truckmaker cited a "significant reduction in demand" from Ford and the expectation that the automaker's orders for will continue to sag. Ford said last week it planned to deepen production cuts, as increased borrowing costs and rising unemployment undercut vehicle sales.

Warrensville-based Navistar produces diesel engines for Ford Super Duty trucks. Ford has said that 60 percent of its F-Series pickups come from F-150, and 40 percent from Super Duty. Ford has also estimated that three-quarters of Super Duty trucks are equipped with diesel engines.