More Diesel woes for Ford?
 

While on an RV forum, I found this posted! This is supposed to have been published by the Chicago tribune Friday morning edition. Here Goes!

A contract dispute between Ford Motor Co. and Navistar International Corp. became public Thursday when the automaker sued Navistar in state court in Michigan for allegedly refusing to live up to terms of a long-standing supply accord.

For a decade, Warrenville-based Navistar has been the sole supplier of the diesel engines that Ford puts into its heavy-duty pickup trucks.

Now, however, the automaker and its key supplier have locked horns over the price Navistar is charging Ford, and also over the extent of Navistar's financial obligations in warranty claims involving its engine.

Ford's claims are "totally without merit," a Navistar spokesman said, adding that the maker of trucks and diesel engines intends to "vigorously respond in court."

Navistar has been providing Ford with a 6-liter diesel engine for several years, Ford's lawsuit notes, and in late 2006 it also began supplying the automaker with a new 6.4-liter engine.

"The parties have previously been able to negotiate and reach agreement on the prices of the engines Navistar produced for Ford," the complaint says, but with regard to the 6.4-liter engine Navistar has altered its bargaining stance and "failed to act in good faith."

In fact, Ford's lawsuit says, Navistar has threatened that unless Ford pays the price Navistar is demanding, Navistar would refuse to ship the new engine to Ford. That move would breach the supply agreement, it contends.

In addition, Ford says, Navistar is not complying with its warranty-sharing obligations. Under the agreement, Navistar is supposed to pay a portion of the costs Ford encounters for engine-related warranty repairs. But Navistar has refused to pay the amounts Ford says it is owed, according to the lawsuit.

In response, Ford took the unusual step of "debiting" Navistar for a portion of those costs. In other words, Ford is withholding money it owes Navistar for engines, in order to recover the money Ford says Navistar owes it under the warranty agreement.

Ford is asking the court to rule that the "debit" is proper under the circumstances, and it also asks the judge to order Navistar to reimburse Ford for future warranty costs.

The automaker also asks the court to issue a declaratory judgment on what Navistar can charge for the 6.4-liter engine.

The debit "is simply a business transaction intended to resolve a dispute we have with [Navistar]," Ford said in a statement. "Regrettably," it said, because Navistar has not cooperated, "we have no other choice but to take the debit and file the lawsuit."

Ford and Navistar also have a joint venture that manufactures medium-duty Ford trucks for sale in North America.

Found it, try http://www.chicagotribune.com/busine...ck=1&cset=true or go to www.chigagotribune.com and search for Ford Navistar.

This may be the hold up we have been hearing about. Hopefully it is resolved peacefully, soon.

Banksstroker

Im sure its just a small hiccup :-bigparty

Ford pulled this crap with my company. We had agreed to terms well in advance. Once the program launched, ford demanded a price reduction even though our cost had risen sharply due to increased steel cost. Ford took millions back as we were on contract to supply parts, they just didn't pay for them. This, along with a few other issues put us in bankruptcy for two years.

Stick to your guns Navistar !!!

I am ok with Ford..but if they did that to your company, and now Navistar, it sounds like they are getting good at using this tactic. I hope they can just deal with it and get back to taking care of the customers.

this sounds very ugly. not saying it will happen but i wouldnt want to bear the brunt of a disgrutaled employee in my expensive 6.4 not that i own one. :-lamesign



lawyers are gonna make a killing with this one and the cost will get passed on to us.



:mad:

Your company?

GM tries to play the same games. Luckily the leaders in our case have a bigger set then GM. :D

It would be very bad if they killed the 6.4 this early in the game. It would really be a big disappointment...both for Ford and for IH.

they (IH) would still have the 6.4 in their own trucks. what about all the trucks already built still setting at the ford factory? :-rip

Ford needs navistar on Navistar needs Ford. Navistar would go belly up with out Fords business an Ford knows it. My guess is Navistar is trying to take advantage off Ford. Navistar better watch it. Its like the 100 lb tacle facing the 300 lb linebacker. Navistar doesnt have the resources to fight Ford. Ford will win. There just too powerful. Its just greed involved here. Navistar wants to rape Ford but Ford says were not buying it. Theywill come to there senses.

Im sure it will be resolved, there is to much money at risk for both companys but Im waiting till it is to place my order.

Navistar has their own class8 big trucks on the road, plus the 6.4 in their smaller trucks. If Navistar told ford to jump in the lake, what would ford do for their Diesel line, Cummins is Dodge, chevy duramax, FORD IS SOL unless they are already hooked up with Cat which I read on here that Cat couldn't produce the # of engines the ford needed
JJB
btw does anyone know the cost of the 6.4 that we can't get right now & the auto tranny. Seems like a lot of people has ordered one ,but no body has put a price on the engine & tranny

price of 6.4 is 5432 (inv) and auto tranny is 1237 (invoice)

My order /Build sheet states that the 5-speed auto tranny is $1,490, like wise the "Retail" for the F450 (W43) 4x4 CRW PU = $50,355 inwhich the price of the 6.4 is buried.