Ford Lawsuit ??

[Wrenchtraveller]

Anybody know anything about this or is it Net fluff?
AP
Ford Sues Navistar Over Prices, Contract
Friday January 12, 6:04 pm ET
By John D. Stoll and Terry Kosdrosky
Ford Sues Supplier Navistar Over Engine Prices and Warranty Dispute
DETROIT (AP) -- Ford Motor Co. has filed suit against U.S. diesel engine supplier Navistar International Corp. regarding pricing and a contract dispute, a move that could trigger hiccups for the supply of high-profit Super Duty pickup trucks down the road.
Dearborn-based Ford filed the lawsuit in a Michigan court against Warrenville, Ill.-based Navistar on Thursday, accusing it of not complying with a warranty cost-sharing agreement and "unjustifiably" raising prices on a diesel engine used in the F-series pickup truck line.
The lawsuit states that Navistar has threatened to cut off shipments if Ford does not pay a price Navistar is demanding, a move Ford says would breach a contract. Also, Ford accuses Navistar of not complying with warranty-contract obligations related to the cost of fixing quality glitches that consumers encounter.
Ford started debiting Navistar's invoices to recover what it feels the supplier owes related to warranties, according to the lawsuit.
The lawsuit comes at a vulnerable point for Ford and Navistar, which are counting on a successful partnership to make money in a tough U.S. market where high costs and falling domestic-vehicle market share have forced job cuts at both companies.
Though Ford's actions could hurt the auto maker and the supplier, Ford is banking on the success of large pickups -- many of which use Navistar engines -- to help the auto maker regain profitability. Because engines are such high-cost components, it is seen as essential for Ford to pay competitive prices for the part.
Both Ford and Navistar confirmed the lawsuit, which was reported Friday by the Chicago Tribune, though Navistar spokesman Roy Wiley said the company had not yet been officially served.
"This is totally without merit and we are going to vigorously respond in court," Wiley said.
Ford is in the midst of launching its critical F-Series Super Duty vehicles in the United States. The truck has traditionally represented more than 300,000 vehicles worth of annual volume, and 70 percent of Super Duty trucks carry diesel engines. The vehicle was redesigned for 2007, but its sales launch was delayed by nearly six months due to problems in diesel engine development -- the launch is now planned early this year.
Ford and Navistar have a long-time partnership for the development and supply of diesel engines, but various quality issues and a delay on the development of a recent product have shaken the relationship somewhat.

[W7PSK]

Can we sue ford now for "unjustifiably" raising prices on a diesel truck

[JimF]

Could be why I perfer the Cummings...

[rickety]

Ya know, ya just gotta feel sorry for Ford and Navistar both. They've been hit with so many problems (the 6.0psd, tranny, Jaguar not selling well, etc. etc.) now this. Navistar just doesn't seem able to make a medium duty engine that holds up well. Take that back, I had a 1988 Ford one ton van witha 7.3 diesel in it that I put almost four hundred thousand miles on. Had to put in three new trannys (electronic). The company evetually went to Dodge because of the trannys in the Ford.
I sure hope Ford can pull out of this. If not we get another black eye for not being able to build a good American truck or car.
My opiniom, not meant to disturb any one

[skypilot]

And to add more fuel to the fire, Diamler/Chrysler in fits as well with the possibility of Nissan or Toyota going for Chrysler?? (as reported on CNN Money Matters today during noon reports).

[Connorsmom]

The front page news here yesterday in the Detroit Free Press....it's rumored that Hyundai wants Chrysler.

Jan

[rickety]

Hyundai, Largest shipbuilder in the world. They have the money.....just have to wait and see what shakes out.

[keham]

Ford and navstarr been fighting over warranty for years over the 6.0L it seems the Navstar version (vt365) doesn't have the trouble that fords have (same engine diff electronic and couple diff sensor locations is about it. Ford upped the horse power is the main diff. But who really knows anymore.


ken

[sreigle]

Ford's 6.0 had its share of problems in the early couple of years. I think that's what this is all about.

The tranny, the TorqShift, has been pretty much bulletproof. I've not heard of any problems with it and a couple of magazines named it the best one out there in the light duty trucks. From what I keep reading, I have to agree. Mine has been excellent. Very smart about when to shift, both up and down, without hunting like some other brands have complained about. The only thing I don't like is about 58 mph it is still holding the gear (in tow/haul) and if that's the speed I want to run I have to sometimes take it out of tow/haul so it shifts, then put it back in tow/haul. A mph or two more and it goes ahead and shifts.

The 6.4L has had so much testing in real life situations that I'm hopeful it's a good one. I know its debut was delayed close to a year so Ford could incorporate some changes based on the real life testing that took place, including heaving towing. Only time will tell.