Ford cuts Super Duty production amid dispute with engine maker

Page 1 of 2  
Ford cuts Super Duty production amid dispute with engine maker http://www.autonews.com/apps/pbcs.dll/article?AID=/20070228/REG/70228054/1139
The launch of Ford Motor Co.'s new F-series Super Duty pickup is in danger
of stalling.
Less than a week after International Truck and Engine Corp. stopped shipping diesel engines, Ford Motor is cutting production of the highly profitable F-250, F-350 and F-450 Super Duty.
Ford is cutting shifts starting Thursday, March 1, at the lone plant in Louisville, Ky., that builds the F-series Super Duty. No production is scheduled for Friday, March 2, and daily shifts will be reduced from three to one starting Monday, March 5, said Ford spokesman Tom Hoyt.
International and Ford are locked in a legal battle over money. Ford sued International on Jan. 11 over warranty costs related to the old 6.0-liter Power Stroke engine that powered the F-series Super Duty truck from 2002 to 2007 and over the price International is charging for the 6.4-liter turbodiesel that replaced it.
Ford launched the 2008 F-series Super Duty this month and is trying to fill 50,000 dealership orders for the big pickup, the most profitable vehicle Ford sells. Although Ford offers the F-250, F-350 and F-450 Super Duty with a gasoline engine, about 75 percent are sold with the hard-working diesel.
Buyers of F-series Super Duty trucks opt for the diesel because it can tow heavier loads and because it gets better fuel economy than the 5.4-liter V-8 or 6.8-liter V-10 gasoline engines.
Last year, Ford sold 796,000 F-series pickups, about 25 percent of which were Super Duty models.
-- "If they pull a knife, you pull a gun. If they put one of yours in the hospital, you put one of theirs in the morgue." Sean Connery, "The Untouchables"
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
I don't care who's right and who's wrong on this one, Ford should have common sense and wisdom enough to act in the interests of keeping their supply chain intact in the midst of fulfilling their bread & butter orders. But it seems like a lack of common business sense is an all to common phenomenom up there.

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
snipped-for-privacy@optonline.net wrote:

or at least make these changes before the new model years come out, and plan for a change.
I really like ford, and enjoy the vehicles, but its things like this that you just shake your head at. They should just look out the window and watch foreign companies drive right past them to the top sellers.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Ford needs the F series to stay alive. Maybe they should seek a resolution quickly or they will fall further behind. Maybe buyers will wait indefinitely for a diesel super duty but I know Dodge has a large pickup with doesel that has the same towing/payload and I would just go to the competition. Where is Ford's business sense? Losing sales of your bread and butter. Get the lines rolling then shop other engine makers for the 09 model year

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On 28 Feb 2007 22:45:53 -0800, snipped-for-privacy@optonline.net wrote:

One of Detroits big problems in years past has been in not looking out for the best interest of the business in the long term and simply writing the check. This has led to their current non-competitive situation and shrinking market share. Maybe, someone at Ford has just now said "Wait a minute! There has to be a way to remain competitive in this or, we are not going to do that!" It may be that one or the other has not complied with the terms of the contract. That is for the lawyers and courts to decide if the participants cannot work it out. It is the duty of the Ford Motor Co. to look out for their own business which they have obviously been derelict in doing for several years. Could it be that the new guy at the head of the table is now taking charge? Could this possibly lead to a decent product at a competitive price? And, it does matter who is right or wrong here just like it does everywhere else in life. It may be that their supply chain needs repair or replacement in the best interest of Ford for the future. If they are trying to screw the suppliers, they won't have a supply chain when it is all said and done.
Lugnut

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

That sounds like the supplier equivalent of a union strike. Who is extorting whom?
--
---
Clarence A Dold - Hidden Valley Lake, CA, USA GPS: 38.8,-122.5
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Thu, 1 Mar 2007 20:50:27 +0000 (UTC), snipped-for-privacy@18.usenet.us.com wrote:

We may never have the answer to that. If the deal can't be worked out, then, there are probably a half dozen engine builders who can provide decent engines for Ford including Ford themselves if they want. The deal with Navistar was to take advantage of the larger mass production quantity and Navistar already had a proven product in the beginning years ago when Navistar was near death and badly needed to sell a product. Ford was there to take the engines off their hands and keep the system working. The continuing relationship was probably one of convenience as much as anything - Navistar needed Ford to remain profitable with the engine that they needed themselves for so many other applications and, Ford had an adequate supply of proven engines at a reasonable cost with minimal development outlay. If the problem is warranty expense, Ford should have simply bought the engines at the best price possible for production since the engine was a joint development with Ford over the last several incarnations of the engine at least partly responsible and picked up the warranty expense as a normal cost of doing business. I can't believe they would not have had some idea of failure rates.
Ford needs to be building and selling the trucks but, I see no reason to do that while screwing yourself for the future if that is the case. Once the lawyers get involved, the cost will escalate rapidly for both sides with nothing having been particularly productive in the long run.
Lugnut
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Diesel spat snarls Ford Super Duty launch Engine supply for hot pickup remains in doubt A festering dispute between Ford Motor Co. and International Truck and Engine Corp. is threatening to stall the launch of Ford's most profitable vehicle, the Super Duty pickup. Late last week, a Michigan judge issued a temporary order forcing International to resume production of the Super Duty's 6.4-liter diesel engine.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Navistar made a shit load of diesels in its new plant in 2006 for Ford that were not up to specs, that cost Ford a lot of bad PR.
mike

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
correct you are mike, and then when there was warranty work that had to be done to those engines, and the past warranty repair costs for the bad 6 liter engines they made, Navistar told for to "F" off.
yet ford gets the bum rap.
give me a break please!!!

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

You cannot let Ford completely off the hook for this. They picked the supplier, and I am sure that they "qualified" the production engines. On the other hand, I am sure the contract with Navistar included provisions for dividing warranty costs. It sounds like Navistar didn't want to cover their fair share (at least in Ford's opinion) and Ford tried to deduct this from payments for new engines. Neither course of action seems correct. Sounds like a case where a court appoint arbitrator is needed.
Now if this had been Toyota, they would have purchased a significant portion of Navistar before doing business with them.
Ed
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
What leads you to that conclusion? Although Fords builds the diesels they use in their farm equipment, Fords light truck diesel engines have always been made by Navistar for economies of scale. Navistar's newest plant was build specifically to build V6 and V8 diesel engines for Ford . The Powerstroke engines they built for Ford simply did not meet Fords specs, hence the problem
mike

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Toyota would have bought navistar then improved the design/quality then placed them in toyota vehicles!!!
wrote:

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Toyota could use a good diesel. Perhaps then they could get out of their own way. LOL
mike

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

--
Posted via a free Usenet account from http://www.teranews.com


Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Get real the 4 cy Camry is a slug. You must live it flat country, not driven some of the competitors V6 vehicles that cost less to drive home, or do not know many Toyota owners, if you think Toyotas have a lot of power. . LOL
mike

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

--
Posted via a free Usenet account from http://www.teranews.com


Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
You are free to believe whatever you choose.
mike
wrote in message
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Wed, 7 Mar 2007 18:39:54 -0500, "Mike Hunter"

Sorry Mike...talking about freedom to believe or choose here...
But is that not what the coming war with the Middle East and Iran is going to decide...?? To e-mail remove the X from my address...
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Related Threads

    Motorsforum.com is a website by car enthusiasts for car enthusiasts. It is not affiliated with any of the car or spare part manufacturers or car dealers discussed here. All logos and trade names are the property of their respective owners.