Ford cuts Super Duty production amid dispute with engine maker

Ford cuts Super Duty production amid dispute with engine maker

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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"

Reply to
Jim Higgins
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maker

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Reply to
sleepdog

maker

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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.

Reply to
Picasso

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

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Reply to
lugnut

That sounds like the supplier equivalent of a union strike. Who is extorting whom?

Reply to
dold

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Reply to
bigjim

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

Reply to
lugnut

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.

Reply to
Ed White

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

Reply to
Mike Hunter

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.

Reply to
Tom

Just three days after saying it would suspend producing diesel engines for Ford Motor Co., Navistar International Corp. said it would resume production because of a court order from a Michigan judge.

Navistar said it will resume production of Power Stroke diesel engines used by Ford in its heavy duty pickup truck line.

Navistar is the parent company if International Truck and Engine Corp., which makes Class 4-8 diesel engines.

Under the court order, Ford will be required to pay, without deductions, for all diesel engines it receives from International, the company said. L&MT Just three days after saying it would suspend producing diesel engines for Ford Motor Co., Navistar International Corp. said it would resume production because of a court order from a Michigan judge.

Navistar said it will resume production of Power Stroke diesel engines used by Ford in its heavy duty pickup truck line.

Navistar is the parent company if International Truck and Engine Corp., which makes Class 4-8 diesel engines.

Under the court order, Ford will be required to pay, without deductions, for all diesel engines it receives from International, the company said.

Reply to
C. E. White

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

Reply to
C. E. White

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

Reply to
Mike Hunter

Toyota would have bought navistar then improved the design/quality then placed them in toyota vehicles!!!

Reply to
bigjim

Toyota could use a good diesel. Perhaps then they could get out of their own way. LOL

mike

Reply to
Mike Hunter

Every Toyota owner I know is satisfied with the performance of their Toyota. Perhaps they're all just better drivers and have figured out how to merge by watching the traffic carefully and anticipating traffic flow, eliminating the need for sudden bursts of panicked emergency acceleration.

We're all smiling when we go to the gas pump, too. Those economical yet powerful I4 Toyota motors save us a lot of money at the pump.

My I4 Rav4s are powerful enough that I find I'm always in fifth gear when I actually merge onto the interstates. I never use full throttle, either, getting there. No need for it.

Maybe, "mike," you should take some driving lessons.

Reply to
DH

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

Reply to
Mike Hunter

If your experience with I4 engines is in Fords, GMs and Crapslers, then I understand why you think a bigger motor is necessary, because their I4s are crap. Toyota, however, does not build shitty I4 engines.

You might just go look at the latest CR Auto Buying Guide and see who's happy with their cars and who isn't.

Reply to
DH

It may also have some to do with driving habits. Although I drive a Ford V6, I probably would be just as happy if I got my Contour with a I4. It makes 35 less horse-power than my engine, but it drives just as well at the speed limit as mine, and gets better mileage.

Jeff

Reply to
Jeff

Who ever said Toyota builds shitty 4 cy engines, not me?. I know Toyota builds great engines. You bias is showing, you are the one calling others crap. I'll bet you have not driven any, let alone all, of those you calling crap. Since you are posting in a NG chances are you do not even own a late model vehicle

What I said was there are plenty of vehicle on the market with V6 engine that do much better job of motivating the vehicle than do the 4cy engines in Toyotas, that cost as much or more, than those that have V6 engines. In comparison the Toyota are under powered. The 4cy Camry compared to others car its size with V6s, including the Camry V6, is a slug,. You can disagree if you choose but that is a fact.

If one lives in hilly county as I do those V6 equipped vehicles will do as good or better than a 4cy in fuel mileages, since they do not need to be run down a gear or two to maintain the same speed on the same grades. That is a fact as well. I own a V6 vehicle that does no better on fuel, when I drive it in hilly country, than my V8 equipped vehicle over the same roads. Even though EPA for the V6 is 4 MPH higher that the V8. That is a fact as well, for the same reason.

You are free to believe whatever you choose and spend you money however you choose. I could not care less

mike

e.teranews.com...

Reply to
Mike Hunter

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