Community Forums

ChiefJohn · 02-26-2007, 09:33 AM

I posted earlier about the dispute between Navistar and Ford over warranty claims for the 6.0L diesel -- now it looks like the new SuperDuty Pickups are going to be hard to find.

Quote:

Navistar suspends diesel engine production; says Ford not honoring terms

Bryce G. Hoffman / The Detroit News

Ford Motor Co. said Monday morning that a decision by key supplier Navistar International Corp. will not disrupt production of SuperDuty pickups "in the near term." However, the automaker would not say how long it could keep its truck lines running if the recalcitrant vendor holds out.

Navistar announced Monday that it has halted production of the Power Stroke diesel engine it makes for Ford because of an ongoing contract dispute. The Warrenville, Ill.-based engine manufacturer is the exclusive diesel engine supplier for Ford's heavy duty pickup trucks.

In a statement today, Navistar said it "pays its suppliers and employees under contract terms and that it expects Ford to honor the terms of its agreement."

But Ford said Navistar is the one violating that contract.

"Ford has always honored the agreement and will continue to do so in the future," said Ford spokesman Tom Hoyt. "We have been working very closely with Navistar for many months to resolve these contract issues."

In January, Ford sued Navistar, saying the engine maker was not complying with warranty cost-sharing agreements and that it had unjustifiably raised prices on its products. The suit said at the time that Navistar had threatened to cut off shipment if Ford did not pay the new prices for its engines.

Navistar said it will stop making the 6.4-litre Power Stroke at its Indianapolis and Huntsville, Ala. factories, but added that the Huntsville plant will continue production for other customers.

Any disruption of SuperDuty production would be disastrous for Ford. The struggling automaker just launched a redesigned SuperDuty line, and the big trucks are among the most popular and profitable vehicles it sells.

It is not the first time problems with a supplier have threatened an important new vehicle. Last fall, bankrupt Collins&Aikman Corp. briefly suspended parts shipments to Ford's factory in Hermosillo, Mexico, halting production of the Ford Fusion.

You can reach Bryce Hoffman at (313) 222-2443 or bhoffman@detnews.com.

ChiefJohn · 02-26-2007, 09:33 AM

I posted earlier about the dispute between Navistar and Ford over warranty claims for the 6.0L diesel -- now it looks like the new SuperDuty Pickups are going to be hard to find.

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Navistar suspends diesel engine production; says Ford not honoring terms

Bryce G. Hoffman / The Detroit News

Ford Motor Co. said Monday morning that a decision by key supplier Navistar International Corp. will not disrupt production of SuperDuty pickups "in the near term." However, the automaker would not say how long it could keep its truck lines running if the recalcitrant vendor holds out.

Navistar announced Monday that it has halted production of the Power Stroke diesel engine it makes for Ford because of an ongoing contract dispute. The Warrenville, Ill.-based engine manufacturer is the exclusive diesel engine supplier for Ford's heavy duty pickup trucks.

In a statement today, Navistar said it "pays its suppliers and employees under contract terms and that it expects Ford to honor the terms of its agreement."

But Ford said Navistar is the one violating that contract.

"Ford has always honored the agreement and will continue to do so in the future," said Ford spokesman Tom Hoyt. "We have been working very closely with Navistar for many months to resolve these contract issues."

In January, Ford sued Navistar, saying the engine maker was not complying with warranty cost-sharing agreements and that it had unjustifiably raised prices on its products. The suit said at the time that Navistar had threatened to cut off shipment if Ford did not pay the new prices for its engines.

Navistar said it will stop making the 6.4-litre Power Stroke at its Indianapolis and Huntsville, Ala. factories, but added that the Huntsville plant will continue production for other customers.

Any disruption of SuperDuty production would be disastrous for Ford. The struggling automaker just launched a redesigned SuperDuty line, and the big trucks are among the most popular and profitable vehicles it sells.

It is not the first time problems with a supplier have threatened an important new vehicle. Last fall, bankrupt Collins&Aikman Corp. briefly suspended parts shipments to Ford's factory in Hermosillo, Mexico, halting production of the Ford Fusion.

You can reach Bryce Hoffman at (313) 222-2443 or bhoffman@detnews.com. </div></BLOCKQUOTE>

RustyJC · 02-26-2007, 09:40 AM

It'll be interesting to see which company blinks first....

Rusty

Billd · 02-26-2007, 06:29 PM

This is not good for either company. Hope it is a short lived stoppage.

Bill

Jeff_in_The_Dalles · 02-27-2007, 05:54 AM

Ouch. That's gotta smart...

litespeed · 02-27-2007, 10:52 AM

Wonder what I can do to my 2002 F250 to make it pull my new ( yet to be picked up) EXCEL until this fracus settles down!

Ray,IN · 02-28-2007, 08:13 AM

The politics of corporate America strike again. This pushes Ford into the spotlight again, only with a positive spin this time. They get free advertising, have a valid excuse to raise diesel truck prices and can now decline dickering over the sticker price of in-stock inventory. Hummm, sounds rather cynical doesn't it? Now I wonder why?
litespeed, run the numbers; you may be pleasntly suprised. Calculate the percentage of GVW to pin weight of your Excel by using the dry weight and dry pin weight to first find that percentage, then multiply the percentage and GVW. This should give a close approximation to find out if your 3/4 will safely handle the weight. Hope that makes sense.

Bruce and Jenna · 02-28-2007, 07:02 PM

Jay,

33RSO Classic weighs 12,400, Limited weighs 13,000 dry. With liquids and stuff figure about 15,000#.

2007 F250 fifth wheel tow rating = about 16,000#, depending on options. That's one passenger and a tank of gas. No hitch, no tools, no DW, no dogs.

Betcha a 2002 ain't rated that high.

Maybe you can get it goin'. But can you stop?

You were right to order an F350. I bought the same to tow my 33RSE.

Hope they right about supplies "in the near term." If not, maybe you should go down to Detroit and talk some sense into those fools. Gettin' in the way of your RV aspirations.

RustyJC · 03-01-2007, 04:44 AM

The problem with an F250 is that you will be over the limited GVWR because of pin weight before you ever approach the "manufacturer's trailer tow rating".

Now, to get back on topic:

The saga continues HERE.
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">DETROIT, Feb 28 (Reuters) - Ford Motor Co. said on Wednesday a Michigan court has ordered Navistar International Corp. to resume shipping diesel engines that power the automaker's key F-Series Super Duty pickup trucks.

Navistar this week had stopped building the 6.4 liter diesels for the Super Duty models because of a contract dispute with the automaker.

"Earlier (Wednesday) we filed a motion with the court seeking a temporary restraining order to reinstate the shipment of 6.4 L Powerstroke diesel engines to our Kentucky Truck Plant," Ford spokeswoman Becky Sanch said in a statement. "The judge granted the motion and Navistar was ordered to resume production and shipment of engines."

Ford had sued Navistar in January over warranty costs and engine prices. </div></BLOCKQUOTE>

Rusty

Hitchhiker · 03-01-2007, 06:09 AM

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by RustyJC:
"The judge granted the motion and Navistar was ordered to resume production and shipment of engines."

</div></BLOCKQUOTE>

Maybe Ford should design and build its own diesel engine to keep from being crippled by vendors. The way I understand it, Navistar stopped shipping engines to Ford because Ford wasn't paying the full price. The judge's order requires Ford to stop withholding funds from their payment. Apparently, Ford withheld full payment because Navistar failed to pay its share of repair costs from the 6.0 liter diesel fiasco.

edgray · 03-01-2007, 08:40 AM

The speed at which this dust up between Ford and International was "resolved" makes me wonder why we are still having to hear all this "breaking news" about the Anna Nichol Smith demise. Do they really think we care? ED

RustyJC · 03-01-2007, 08:49 AM

Well, here's the International/Navistar side of the story - ARTICLE
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Navistar Says Operating Company Will Resume Production of Diesel Engines for Ford Under Temporary Court Order That Also Requires Ford to Pay for Engines Shipped

WARRENVILLE, Ill.--(BUSINESS WIRE)--Navistar International Corporation (OTC:NAVZ) said today that it will resume production of Power Stroke® diesel engines used by Ford Motor Company in its heavy duty pickup truck line. The announcement is in response to a temporary order issued by Judge John J. McDonald of the Circuit Court of Oakland County, Michigan.

Judge McDonald issued the temporary order late Wednesday afternoon and scheduled a hearing for both companies Wednesday, March 7.

Under Judge McDonald's order, Ford will be required to pay, without deductions, for all diesel engines it receives from International Truck and Engine Corporation, Navistar's principal operating company.

"We have a great engine that has been met with very positive initial reviews from customers, Ford dealers and media, and we are anxious for it to get out into the marketplace," said Jack Allen, president of International's engine group.

Navistar announced Monday that it was immediately suspending production of the new 6.4L Power Stroke® diesel engine because Ford had stopped honoring the terms of agreement under which the engines were built.

International currently produces Power Stroke® 6.4L diesel engines that meet 2007 emissions standards while increasing performance, durability and fuel economy at its engine plants in Indianapolis, Ind., and Huntsville, Ala.

Navistar International Corporation (OTC:NAVZ) is the parent company of International Truck and Engine Corporation. The company produces International® brand commercial trucks, mid-range diesel engines and IC brand school buses, Workhorse brand chassis for motor homes and step vans, and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. Navistar is also a provider of truck and diesel engine parts. A wholly owned subsidiary offers financing services. Additional information is available at: www.navistar.com. </div></BLOCKQUOTE>

Rusty

ISLAPP · 03-01-2007, 08:56 AM

I am sure there is more to it than what we see, but from what we do see, I sure dont think it shows well for Navistar. They built a 6.0L and Ford agreed to use it provided they share in the cost of warranty work. The engine was junk, there was alot of warranty costs and Navistar says they dont want to help with the cost of the repairs. Now for the maker of the thing that is junk to say they dont want to live up to their end of the bargain sure doesnt say much for that maker.
Personally, I'm betting their 6.4 is going to be the same junk as the 6.0.
Mike

gearman · 03-01-2007, 08:59 AM

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Hitchhiker:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by RustyJC:
"The judge granted the motion and Navistar was ordered to resume production and shipment of engines."

</div></BLOCKQUOTE>

Maybe Ford should design and build its own diesel engine to keep from being crippled by vendors.

</div></BLOCKQUOTE>

None of the truck manufactures make there own diesel motor, in fact they don't make much of anything, they buy it and assemble then ship to dealer.

Besides this latest ford issure. Fords warrenty program I thought was very poor on my '01 w/7.3L PSD. My next truck will be a chevy. The wife is on her 5th tahoe, GM is a whole different ball game when taking care of the customer after the sale!! Maybe its our local dealers, but Chevy for me next go around.