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North American truckmaker Navistar International has filed a lawsuit against Ford Motor Company alleging breach of contract over the supply of diesel engines for the Ford F-150 pickup.

The lawsuit, filed in the circuit court of Cook County, Illinois, the area that includes Detroit, seeks "at least hundreds of millions of dollars", according to Navistar.

Navistar is saying that Ford intends to introduce a new 4.4-litre diesel engine for production in North America that was actually designed by the Navistar operating company, International Truck & Engine Corporation.

It claims Ford intends to produce the engine possibly in Mexico by 2009 or 2010 and to use it on F-150 pickups and other vehicles.

Navistar says it has spent millions of dollars developing the Lion diesel engine for Ford to use in the F-150, which has not previously had a diesel option. It claims Ford cannot develop its own engine without violating its contract with Navistar.

The lawsuit is the latest in a series of acrimonious exchanges between the two groups. Earlier this year, Ford filed a lawsuit against Navistar over 2007 engine pricing and earlier warranty claims on PowerStroke diesel engines.

Navistar then counter-sued, refuting Ford's claims and further claiming that Ford had infringed contract terms. In this earlier lawsuit, Navistar is claiming in excess of $2 billion in damages.