Navistar International Corp. said Tuesday it will close its Indianapolis engine plant and Indianapolis Casting Corp. foundry following cancellation of its diesel supply agreement with Ford Motor Co. Earlier this month, Ford and Navistar said they would end the supply agreement, but added that they would continue to collaborate on other projects as part of a deal intended to settle their ongoing litigation.Navistar said it will continue to produce diesel engines for Ford through 2009 and work with the automaker on a number of projects including two existing joint ventures and an engine-supply agreement in South America.In January 2007, Ford sued Warrenville, Ill.-based Navistar, alleging the engine and truck maker failed to pay its share of recalls and repair costs from the diesel engine used in the 2002-2007 model years.
