Ford and Navistar Settle Diesel Engine Dispute

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Ford and Navistar Settle Diesel Engine Dispute

Posted by Mike Levine | January 14, 2009

Ford Navistar Dispute Settled
Ford and Navistar have settled a lengthy legal dispute over diesel engines.

The dispute started in January 2007 when Ford filed a lawsuit against Navistar, arguing that Navistar unjustifiably raised engine prices and had not been paying its share of repair costs for Power Stroke diesel warranty claims.

Ford said it had spent $1 billion on repairs and recalls to fix problems with legacy 6.0-liter Power Stroke diesel engines. Ford further contended that its purchase contract with Navistar allowed it to debit Navistar's invoices to recover those costs, which it had done up to $160 million after filing suit. In response, Navistar temporarily stopped shipping Ford its new 6.4-liter Power Stroke diesel engines and filed a countersuit seeking several hundred millions of dollars because Ford intended to introduce a new diesel engine that was designed by International Truck and Engine Corporation before its joint-manufacturing agreement with Navistar expired in 2011.

In a press release issued on Navistar's website, Navistar states the two companies will end their current diesel engine supply agreement effective Dec. 31, 2009. Ford will pay an unspecified amount to Navistar, but both companies will continue to collaborate on a range of other initiatives going forward.

Navistar will increase its equity stake in the truck- and parts-marking company Blue Diamond, which produces Ford-branded F-650 and F-750 medium-duty commercial trucks in Mexico. Navistar will also receive a majority stake in Blue Diamond's replacement-parts business. Both companies will continue their diesel engine supply relationship in South America.

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Comments

I am almost afraid to comment here. I have owned 3 F250's with the 6.0. The 2004 blew up at 30k and was lemoned out for a 2005. The 2005 was towed multiple times to the dealer then also blew up at 31k miles. It was lemoned for a 2006. Knock on wood, the 2006 is setting a record for me. It is up to 36k with only a few minor problems.

It gets 17mpg on the highway, 14 around town with lots of stop and go and 11 pulling a 5000 pound loaded trailer.

It is a great diesel truck but I have to say, each of my trucks stickered at over $50k. The thought that I had to renegotiate each time and go through the hassle really shook my confidence in Ford products.

The new F150 seems great but I am gunshy for Ford now. The diesel is more truck than I need now and the higher fuel costs just seem like a slap in the face.

Posted by: mark | Jan 19, 2009 2:11:30 AM

Yeah, the lower fuel economy of the fords is why I didn't buy one. (and I was afraid of the rumors of the diesel reliability being bad)

Just go with the old 5.9 Cummins in the dodge. Very reliable and I see 15 city/ 24 hwy mileage. (2wd 3500 srw shortbed).

But yeah, these days, I wouldn't buy any of the new diesels due to the new NOx regulations that are sucking the fuel economy out of the new engines (and in some cases, making them more maintenance with urea tanks).
Diesel will eventually go back up in price and then have the $1.00+ premium over 87 that it had this past summer.

Posted by: Josh | Jan 19, 2009 10:15:01 AM

The Scorpion 6.7 liter engine will be replacing the Powerstroke engine starting in 2010/2011.

Posted by: randy | Feb 1, 2009 12:20:05 PM

I HAVE A'96 7.3 P/STROKE VERY DEPENDABLE. HAVE A FUEL LEAK SOMEWHERE BELOW FUEL FILTER. BETWEEN CYL. HEADS. AT 196,955 MI. I AM NOT COMPLAINING JUST THOUGHT SOMEONE COULD GIVE ME SOME INSIGHT.

Posted by: BILL | May 8, 2009 6:39:04 AM

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