Aw, Snap! Ford supplier stops production of Super Duty's Power Stroke diesel engine

[dascrow]

If it weren't for bad luck, Ford would have no luck at all. The single largest profit-source for Ford Motor Company would be the F-Series Pickup and the Power Sroke diesel Super Duty is a huge chunk of that revenue. Navistar International Engines has powered the Super Duty since 1979, which makes them a large component of Ford's success in the market. The good Karma between Ford and International started to go sour with the quality issues surrounding the 6.0L Power Stroke diesel in the last generation of Super Duty trucks. Relations got worse when Ford recently sued International, saying it was not complying with warranty cost-sharing agreements. Ford also contended that International unjustifiably raised prices on its engines. Now International has decided to stop supplying the all-new 6.4L engine that powers the 2008 Super Duty, claiming that Ford is not honoring the contract terms under which the engines are built.

Navistar has given no indication how long this impasse could last, but every second a Super Duty isn't being assembled by Ford workers is money down the drain. With the cash problems Ford already has, this could get ugly quick. We're guessing Ford doesn't have much choice but to kiss and make up with International in order to keep these too-important Power Stroke Super Duty trucks rolling off the assembly line.

perfect time for someone else (Nissan or Toyota) to compete.. Kick 'em while they are down!

[RobKar]

Originally Posted by dascrow

perfect time for someone else (Nissan or Toyota) to compete.. Kick 'em while they are down!

True but I like the Ford SD ...

[Not_Important]

Neither Nissan or Toyota can get it done in less than a year. Nissan also has a sketchy relationship with ITEC, not adversarial like Ford's but neither Nissan nor ITEC trust each other. Toyota stopped the Hino engine group late last year. It would take the remainder of this year to finalize the drivetrain and chassis trim components (important stuff like exhaust, suspension) would take another few months for a mid-2008 launch at the earliest.

[BKW]

Navistar owes Ford millions of dollars in warranty costs stemming from the 6.0 engine Navistar sold Ford for their Super Duty trucks in 2002-2004. The engines were dog meat, which hurt Ford's reputation. So far, the costs are unresolved. Most people have no idea who or what Navistar is. Does International Harvester Corporation ring a bell?

When IHC was bankrupt, Ford saved them from certain death by buying their 6.9 diesels and using them in F250/350's and Econolines beginning in 1983. The engine grew to 7.3 in 1988. Emerging from bankrupcy, IHC became Navistar.

Ford saved Navistar, but now because of the millions owed to Ford, and Ford refusing to honor the contracts as long as Navistar refuses to pay, has lead directly to Navistar shutting down the line.

Blackmail, simple as that.

[AgTitan06]

6.4L Powerstroke Diesel - PRODUCTION HALTED