Navistar
Ford Parts Specialist
Joined: Nov 2006
Posts: 88,826
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From: Simi Valley, CA
Originally Posted by TOMHONE
Ford must ante up a quick $80M to them and another $80M later. Each engine from Navistar costs Ford $7,600. OUCH. Not exactly a good week for them.
Elder User
Joined: Jul 2004
Posts: 745
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From: Rochester, NY
Like someone had mentioned in a similar thread. The base sticker price of every truck sold has the price of a gas engine figured into it.
When you opt for the diesel engine. you're paying an additional $6800 over what the gas engine costs. If a 5.4 costs Ford around 3-4K (rough figures, I don't know the actual price) you are now paying about 10K for that engine. So Ford is making plenty off of the diesel.
When you opt for the diesel engine. you're paying an additional $6800 over what the gas engine costs. If a 5.4 costs Ford around 3-4K (rough figures, I don't know the actual price) you are now paying about 10K for that engine. So Ford is making plenty off of the diesel.
FTE Leadership Emeritus
Joined: May 2004
Posts: 18,787
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From: Melbourne, Aus
Originally Posted by wendell borror
If each egine cost ford 7,600, how is ford selling them as a 6,000$ option in the truck? Or is the price for the diesel going up? I think it's time to start building diesels inhouse again.
5.4's don't come for free (however I doubt it costs them any more than 1600 to build one)
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From: NW burbs of chicago
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The order, issued by state Judge John J. McDonald in Pontiac, Mich., reveals a couple of interesting details.
Ford will pay $7,673 per engine, the consent ruling says, and "will take no offsets of any kind"--in other words, it can't withhold any money--until the dispute is settled. Ford, which buys about 250,000 diesels yearly from Navistar, has argued it should be paying $6,167 per engine.
The document also says Ford must pay Navistar $80 million of the withheld funds by Tuesday.
The companies have agreed to continue trying to resolve their dispute until March 30, the order says, at which time the court will hold a "status conference" where both sides are to tell the judge about the progress they have made, or failed to make, toward crafting a settlement.
If the talks remain stalled, the order says, Navistar can ask the court to make Ford return the other $80 million it is holding.
Ford will pay $7,673 per engine, the consent ruling says, and "will take no offsets of any kind"--in other words, it can't withhold any money--until the dispute is settled. Ford, which buys about 250,000 diesels yearly from Navistar, has argued it should be paying $6,167 per engine.
The document also says Ford must pay Navistar $80 million of the withheld funds by Tuesday.
The companies have agreed to continue trying to resolve their dispute until March 30, the order says, at which time the court will hold a "status conference" where both sides are to tell the judge about the progress they have made, or failed to make, toward crafting a settlement.
If the talks remain stalled, the order says, Navistar can ask the court to make Ford return the other $80 million it is holding.
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From: Coweta,GA, GO DAWGS!!!!!!
They both might wanna wake up,in a hurry. They both need each other. Ford can't build a reliable diesel in house and have it ready before '09 in my opinion. Navistar has just spent millions to develop the 6.4 and without ford they have nothing to put it in, unless they offer it in the cxt/mxt or the 4200. What are the projected sales of those int. models? Hmmmm sounds like navistar might have a huge surpluss sittin in the storage room. These two better get their crap straight, and quit biting the hand that feeds/ both of 'em!
Laughing Gas
Joined: Feb 2004
Posts: 1,139
Likes: 4
From: Maine
I agree with ag30265. These guys need each other. There is no way that Ford can design and build their own diesel within the next 6 months or so when the 09's are due out. I doubt they could find another engine builder, sign a contract and redesign the engine or make whatever necessary changes in time either.
