Ford’s dispute with supplier Navistar escalates
#31
Originally Posted by IHbase
can you imagine how complex the issue of warranty costs really is? Who should pay for the cost of that? Not IH! And then what about modded engines repaired under warranty when the mod was the actual and proximate cause of the (head) failure? Not IH!
-Mike
-Mike
#32
TN Mac,
I would not go so far to think any better service from Toyota. I have a friend that has a new V8 SUV, Toyota makes and the vehicle has the nastiest wrist pin knock in it and everyone that has heard it agree's its a bad wrist pin or loose piston and Toyota will not do a thing about it...
This guy paid 52K for the SUV and was thrilled with it till this all showed up and Yoda want fix the thing and it has less than 10,000 miles on it.
So I just see all sorts of things not so wonderful with whatever brand out there from time to time LOL... I am still hangin' on to my ol'e trusty 95 PSD so far till I am sure I want one of these new 08's... To get one of these new trucks and have darn payments again is bad enough, then add the fact I am not so sure the new truck will pull my Gooseneck trailer and get at least the same fuel mileage my 95' does LOL. Then maybe have trouble with Ford and Navistar if any warranty issues was to show up too???
I just wish I didn't want a new truck so bad, it would make this choice a lot easier LOL...
I would not go so far to think any better service from Toyota. I have a friend that has a new V8 SUV, Toyota makes and the vehicle has the nastiest wrist pin knock in it and everyone that has heard it agree's its a bad wrist pin or loose piston and Toyota will not do a thing about it...
This guy paid 52K for the SUV and was thrilled with it till this all showed up and Yoda want fix the thing and it has less than 10,000 miles on it.
So I just see all sorts of things not so wonderful with whatever brand out there from time to time LOL... I am still hangin' on to my ol'e trusty 95 PSD so far till I am sure I want one of these new 08's... To get one of these new trucks and have darn payments again is bad enough, then add the fact I am not so sure the new truck will pull my Gooseneck trailer and get at least the same fuel mileage my 95' does LOL. Then maybe have trouble with Ford and Navistar if any warranty issues was to show up too???
I just wish I didn't want a new truck so bad, it would make this choice a lot easier LOL...
#34
Gave up on Toyota in 93 had a small $2.00 fuel valve let go in the back of the motor. Where they put it,the head had to be removed. cost me about $275.00 at the time. Then all sorts of problems with air cond and list went on. Very expensive and hard to work on. Good news on Ford production. My orig order date of 1-27 build date of 3-12 has been pushed off just one week to 3-19 a F450 with 4.30's, thanks to the help of a lot of people on this site I had changed my order from 488's looking to run less rpm's and a couple of extra mpg. Can already feel that extra towing capacity. twice that of my 99 350 DRW V10 with 3.73's
#35
KW
doing well been very busy , bent over is right. and I know alot of other people who got the same treatment from ford. I am in the landscape business as you know and I know alot of SD owners and have let to meet one who gets over 15 mpgs out of a 6.0. so I find it hard to believe the 6.4 will be any better. And dont believe they have the exhaust right yet, if I was a betting man I would bet there will be some unhappy campers with 6.4 engines in about june when the temps climb. I hope I am wrong but ford got there last dollars from me on diesels. I am waiting on the new 1 ton toy for my next truck. I hope ford works there way back in race for quality trucks, but am afraid they have let the bean counter ruin there market share in the diesel truck market. all you have to do is look around the majority of sd you see now are driven by soccer moms and suits that pull the boat to the lake 5 times a year.the work truck market is going to the isuzu and gmc and they are much more dependable. As far as the toyotas go I can only speak from my experience bought one new in 95 250 k never a problem bought a new one in 2004 60k right now never been in the shop for anything but service. dont know if they will be better then the fords but they must be doing something right they are number two and will be mumber one next year and GM AND FORD have no one to blame but there self. The japs, learned all the quality stuff from american companies. I know I am dating myself but I can remember when jap products were thought of as junk, now american products are junk, sorry for the rant.
doing well been very busy , bent over is right. and I know alot of other people who got the same treatment from ford. I am in the landscape business as you know and I know alot of SD owners and have let to meet one who gets over 15 mpgs out of a 6.0. so I find it hard to believe the 6.4 will be any better. And dont believe they have the exhaust right yet, if I was a betting man I would bet there will be some unhappy campers with 6.4 engines in about june when the temps climb. I hope I am wrong but ford got there last dollars from me on diesels. I am waiting on the new 1 ton toy for my next truck. I hope ford works there way back in race for quality trucks, but am afraid they have let the bean counter ruin there market share in the diesel truck market. all you have to do is look around the majority of sd you see now are driven by soccer moms and suits that pull the boat to the lake 5 times a year.the work truck market is going to the isuzu and gmc and they are much more dependable. As far as the toyotas go I can only speak from my experience bought one new in 95 250 k never a problem bought a new one in 2004 60k right now never been in the shop for anything but service. dont know if they will be better then the fords but they must be doing something right they are number two and will be mumber one next year and GM AND FORD have no one to blame but there self. The japs, learned all the quality stuff from american companies. I know I am dating myself but I can remember when jap products were thought of as junk, now american products are junk, sorry for the rant.
#36
- $778 per sale of SD with 6.4L
Noticed a few posts here talking about profits. Found an article (see link)...that claims the following:
http://www.courier-journal.com/apps/...703090382/1003
Who see's the problem here???
So...FORD is selling the engine for $6895 but being charged $7673! A loss of $778.
When it rains...it poors!
biz
http://www.courier-journal.com/apps/...703090382/1003
Originally Posted by Article
To keep the flow of new diesel engines coming, Ford agreed last week to pay to Navistar $7,673 per engine, which Ford says exceeds the terms of its contract. In court documents, Ford estimated a fair price for the engines is $6,167 each, based on its own internal studies.
Ford charges $6,895 to upgrade to the diesel from the Super Duty's standard V-8 gasoline engine. About 75 percent of the Super Duty trucks get diesel engines.
Ford charges $6,895 to upgrade to the diesel from the Super Duty's standard V-8 gasoline engine. About 75 percent of the Super Duty trucks get diesel engines.
So...FORD is selling the engine for $6895 but being charged $7673! A loss of $778.
When it rains...it poors!
biz
#37
Originally Posted by biz4two
Noticed a few posts here talking about profits. Found an article (see link)...that claims the following:
http://www.courier-journal.com/apps/pbcs.dll/article?AID=/20070309/BUSINESS/703090382/1003
Who see's the problem here???
So...FORD is selling the engine for $6895 but being charged $7673! A loss of $778.
When it rains...it poors!
biz
http://www.courier-journal.com/apps/pbcs.dll/article?AID=/20070309/BUSINESS/703090382/1003
Who see's the problem here???
So...FORD is selling the engine for $6895 but being charged $7673! A loss of $778.
When it rains...it poors!
biz
#38
Originally Posted by biz4two
So...FORD is selling the engine for $6895 but being charged $7673! A loss of $778.
Let's look at the original quote from the Courier-Journal:
"To keep the flow of new diesel engines coming, Ford agreed last week to pay to Navistar $7,673 per engine, which Ford says exceeds the terms of its contract. In court documents, Ford estimated a fair price for the engines is $6,167 each, based on its own internal studies.
Ford charges $6,895 to upgrade to the diesel from the Super Duty's standard V-8 gasoline engine. About 75 percent of the Super Duty trucks get diesel engines."
I do not dispute that Ford is being charged $7,673 per engine, where your logic falls apart is where you assume that Ford is charging you $6,895 for the engine when in fact it's the EXTRA cost for the diesel. The cost of the V8 gasser is already baked into the base sticker price and I'd be willing to bet that the "price" to the consumer of that engine is $3,000 - $4,000, maybe more (5.4L crate engines run around $4,000). So you are really paying $9,895 - $10,895 for that diesel, a profit to Ford of at least $2,000.Ford charges $6,895 to upgrade to the diesel from the Super Duty's standard V-8 gasoline engine. About 75 percent of the Super Duty trucks get diesel engines."
So don't worry, Ford is making money on the deal.
#40
Originally Posted by mattebury
OK, I'm in manufacturing finance. I'm one of the bean counters who figures out how much it costs for my company to build its stuff.
[/indent]I do not dispute that Ford is being charged $7,673 per engine, where your logic falls apart is where you assume that Ford is charging you $6,895 for the engine when in fact it's the EXTRA cost for the diesel. The cost of the V8 gasser is already baked into the base sticker price and I'd be willing to bet that the "price" to the consumer of that engine is $3,000 - $4,000, maybe more (5.4L crate engines run around $4,000). So you are really paying $9,895 - $10,895 for that diesel, a profit to Ford of at least $2,000.
[/indent]I do not dispute that Ford is being charged $7,673 per engine, where your logic falls apart is where you assume that Ford is charging you $6,895 for the engine when in fact it's the EXTRA cost for the diesel. The cost of the V8 gasser is already baked into the base sticker price and I'd be willing to bet that the "price" to the consumer of that engine is $3,000 - $4,000, maybe more (5.4L crate engines run around $4,000). So you are really paying $9,895 - $10,895 for that diesel, a profit to Ford of at least $2,000.
#42
Originally Posted by Jones02SportTrac
No company will be able to make money for long if they do what Home Depot did for it's CEO. He was paid almost $500 million (yes, you read it right) for a five year run. His severance for getting fired was $200 million. It just aint right...
That goes for FORD Motor Company too! What a bunch of suckers!
biz
#43
Of course Ford is making money- you idiots. If they were not, the diesel option would cost more. What is missing from the analysis above is that with the diesel option come a lot of other upgrades- springs, transmission, etc. But you can assume that it is a lot cheaper for Ford to manufacurer a gas motor than it is for Ford to buy a diesel. No wonder the cheap Cummins is such an attractive set-up for Daimler.
Now let's see- the local dealer sells Dodge Cummins 2500 4X SLTs for $30-32k. I see jokers paying over $40k for the new Ford... You see where this is heading, don't you?...
-Mike
Now let's see- the local dealer sells Dodge Cummins 2500 4X SLTs for $30-32k. I see jokers paying over $40k for the new Ford... You see where this is heading, don't you?...
-Mike
Last edited by IHbase; 03-20-2007 at 12:23 AM.
#44
Originally Posted by IHbase
Of course Ford is making money- you idiots. If they were not, the diesel option would cost more. What is missing from the analysis above is that with the diesel option come a lot of other upgrades- springs, transmission, etc. But you can assume that it is a lot cheaper for Ford to manufacurer a gas motor than it is for Ford to buy a diesel. No wonder the cheap Cummins is such an attractive set-up for Daimler.
Now let's see- the local dealer sells Dodge Cummins 2500 4X SLTs for $30-32k. I see jokers paying over $40k for the new Ford... You see where this is heading, don't you?...
-Mike
Now let's see- the local dealer sells Dodge Cummins 2500 4X SLTs for $30-32k. I see jokers paying over $40k for the new Ford... You see where this is heading, don't you?...
-Mike
#45
Originally Posted by Enomra
I must be one of those idiots then.... I wouldnt pay 10k for a new Dodge. It is one of those things "you get what you pay for" If you don't have one then you need to get educated....
But this is off-topic. The issue here is whether or not FoMoCo is making money on the diesel option. I say that they are at the time of sale but face pressure on warranty costs- hense the litigation with Navistar.
-Mike