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02-26-2007, 06:20 AM
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#2
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Montana Master
Join Date: Oct 2005
Location: Caldwell
Posts: 825
M.O.C. #4855
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Not looking too good for Ford right now. I sure hope they get it all worked out. We as a country don't need any more black eyes.
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02-26-2007, 07:53 AM
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#3
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Montana Master
Join Date: Oct 2006
Location: Choctaw
Posts: 530
M.O.C. #6364
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I brought this up last week. This is a direct result of the PowerStroke failures in current Fords costing the company $50M in warranty repairs and Ford is trying to place the blame and financial burden on Navistar. Non-Ford PowerStrokes using Navistar's electronic components are running without fail. Ford will have to suck up these costs themselves or the F-series trucks will fall behind all other competitors for quite some time.
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02-26-2007, 11:29 AM
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#4
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Montana Master
Join Date: Jan 2004
Location: Down the Road
Posts: 5,627
M.O.C. #889
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Last November, Ford was forced to pledge nearly all its assets, including factory, equipment, and its credit arm to obtain loans to keep its turnaround attempt going. I doubt Ford can afford to "suck up the cost" of warranty bills relating to the Power Stroke.
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02-26-2007, 12:26 PM
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#5
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Montana Master
Join Date: Apr 2006
Location: Brownsburg
Posts: 1,186
M.O.C. #5634
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Navistar shut down in Indy today, Idling workers. Here is quote from local news.
"Warrenville - Navistar International says it's idling a 1200 worker factory in Indianapolis this week because of a dispute with Ford Motor Company.
The Warrenville, Illinois-based truck and engine maker says it's taking the step because Ford has "stopped honoring" the terms of a contract for thousands of diesel engines.
The 4.6-liter Power Stroke is the only diesel engine used in Ford's heavy-duty trucks. The Indianapolis plant makes about 400 of the engines a day.
In years past, Navistar's plants in Indianapolis and Huntsville, Alabama, made about 300,000 engines for Ford.
But a Navistar spokesman says that number has been cut back dramatically because of the automaker's financial woes.
Workers at the Alabama plant will continue operations as usual because they also produce engines for other companies.
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02-27-2007, 11:27 AM
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#6
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Seasoned Camper
Join Date: Sep 2005
Location: Atlanta
Posts: 69
M.O.C. #4518
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I read the warranty cost issue was with the 2003 and 2004 diesels and the 2005 and newer have had normal warranty costs whatever that means. Part of the problem h eis a disagreement about the cost of the new engine navistar charges Ford. I hope they iron this out. Our economy cannot afford to lose a big manufacturer like Ford.
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02-27-2007, 11:51 AM
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#7
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Montana Fan
Join Date: Dec 2005
Location: Grain valley
Posts: 356
M.O.C. #5098
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That's just great. I ordered an F350 with 6.4 a week and a half ago. Hope they get it fixed soon. Ford can't afford not to be shipping the new trucks for very long.
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02-27-2007, 02:37 PM
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#8
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Montana Master
Join Date: Oct 2005
Location:
Posts: 1,568
M.O.C. #4890
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The 6.0 or sick-oh as it is known will be the ruination of Ford. As more of these lemons come off warranty and cost their owners a fortune to fix, Ford's reputation will go down the toilet.
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02-28-2007, 01:08 PM
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#9
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Montana Fan
Join Date: May 2003
Location: Ottawa Lake
Posts: 307
M.O.C. #321
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A judge has ordered navistar to start shipping motors to ford. Roman
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02-28-2007, 01:33 PM
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#10
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Montana Fan
Join Date: Dec 2006
Location: Owendale (Bad Axe)
Posts: 380
M.O.C. #6592
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This is the article in the Detroit Free Press...
NAVISTAR STOPS WORK ON ENGINE FOR FORD
Companies embroiled in dispute
In a showdown that could cause Ford Motor Co. more financial pain, Navistar International said Monday it has halted production of the Power Stroke diesel engine that Ford puts in its profitable and recently revamped Super Duty lineup.
The escalating dispute between the two companies, which was touched off when Ford sued Navistar over a contract disagreement last month, could eventually disrupt production of one of Ford's key new vehicles.
The 2008 Super Duty began arriving in showrooms last month.
If allowed to persist beyond 30 days, the dispute could also get expensive: almost $1 billion a month in revenue at Ford, according to Peter Nesvold, an automotive analyst with Bear, Stearns & Co. On an annual basis, that would represent about 9% of estimated automotive revenue in 2007.
Navistar, which is based in Warrenville, Ill., stands to lose $215 million on an annual basis, he said.
International Truck and Engine Corp., which is Navistar's principal operating company, has been the exclusive diesel engine supplier for Ford's heavy-duty pickups since 1979 and last month launched a new 6.4-liter Power Stroke diesel engine for the new Super Duty.
The Super Duty is a crucial vehicle for Ford, especially as the automaker struggles to get its Way Forward turnaround plan on track after posting a $12.7 billion loss in 2006. The profitable Super Duty, which is sold under such names as F-250 and F-350, represents 40% of Ford's franchise F-Series pickup line. About 70% of Super Duty pickups come equipped with powerful diesel engines.
But in January, Ford sued Navistar in Oakland County Circuit Court after the two companies could not resolve a contract dispute over warranty costs related to the 6.0-liter diesel engine that was in previous Super Duty models.
Ford spokeswoman Becky Sanch said Ford debited Navistar to collect amounts that Ford believed Navistar owed the automaker for the costs of warranty repairs, owner notification programs and reacquired vehicles.
Now Navistar is firing back. On Monday, Navistar accused Ford of not honoring the terms of a contract between the two companies. The contract runs through 2012.
"We haven't been paid for some time," Navistar spokesman Roy Wiley said.
Navistar, which is expected to file a response to that lawsuit this week, refused to say how much Ford owes the company. But Wiley noted that Navistar builds about 300,000 engines a year for Ford, and he called the amount Ford owes Navistar significant.
Navistar said it would immediately stop production of the Power Stroke at engine plants in Indianapolis, Ind., and Huntsville, Ala. The Huntsville operation will continue to produce engines for other customers. Navistar also said in a statement that "it pays its suppliers and employees under contract terms and that it expects Ford to honor the terms of its agreement."
Mark Fields, Ford's president of the Americas, previously told the Free Press that Ford would legally try to stop Navistar from halting production if the contract dispute degenerated to that point.
"It's not in any way indicative of issues with the engine," he said during an interview in Texas in Janurary. "It's a great engine."
Navistar agrees, writing that it believes the new Power Stroke diesel engines provide Ford the opportunity to maintain or improve its leadership in the segment.
Sanch said Ford and Navistar continue to try to resolve the dispute. She said there are no plans to stop production of the Super Duty, which is built at Ford's assembly plant in Louisville, Ky., because Ford has an adequate supply of engines.
Newvold said Ford and Navistar are "tied at the hip" when it comes to diesel engines and the F-250 and F-350, and he doesn't expect an "extended outage" given that mutual dependency.
"We thought that mutual fear would bring peace and that a disruption wouldn't occur," Nesvold wrote.
Jan
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02-28-2007, 02:12 PM
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#11
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Montana Fan
Join Date: Oct 2005
Location: Crown Point
Posts: 382
M.O.C. #4726
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Read "Romans'" post. Navistar ordered by judge to start shipping engines. This is great news for Ford. Now they (Ford & Navistar) can continue to hash out the problems in court.
Chuck
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03-01-2007, 04:38 AM
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#12
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Montana Fan
Join Date: Oct 2004
Location: Jonesborough
Posts: 235
M.O.C. #2313
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03-02-2007, 12:11 PM
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#14
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Montana Fan
Join Date: Jan 2007
Location: Buford
Posts: 285
M.O.C. #6735
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Injunction ordered by the courts and Navistar will resume shipping engines. Next court date March 17. I got this news from Ford workers on dieselstop.com.
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03-02-2007, 02:15 PM
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#15
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Montana Master
Join Date: May 2004
Location: Fort Wayne
Posts: 689
M.O.C. #1536
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Yes but Ford must pay for those engines and not withhold money from Nav.
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03-02-2007, 06:39 PM
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#16
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Montana Master
Join Date: Jul 2004
Location: Manhattan
Posts: 1,144
M.O.C. #1846
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Which, if I read other post / articles correctly, is to pay for the new (6.4L) engines. The dispute (and money withheld) for the 6.0L is ongoing and the next discussion in court on/about the 17th. Ford can not afford to miss too many shipment dates -- there are quite a few folks in the market today for a new vehicle; if Ford loses their share to either GMC or DC, it will be some time before that buyer comes back. Just my .02 worth.
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03-03-2007, 12:43 PM
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#17
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Montana Master
Join Date: Nov 2002
Location: Oceanside
Posts: 20,028
M.O.C. #20
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Rich, I've not had a chance to check those forums. Are you referring to the dispute between Navistar and Ford or are there problems with the 6.4 being reported?
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