Ford & Navistar parting ways?

[esommer2500]

Just got off the phone with the old man, and he said he 'heard' on the news today that Ford announced that it was going to part ways with Navistar. My ears perked up...



Anybody else 'hear' any of this interesting news? If there is any validity, it could make things VERY interesting in the future.

 

[LSMITH]

Navistar has invested hundreds of millions of dollars in the 6. 0L Powerstroke. I find it very hard to believe that they are going to part ways. 375,000 6. 0L engines per year are slated for Ford right now, and if the DMax is any indicator that number will increase. The Duramax has been a HUGE success for GM, and they are currently expanding production as well. I will believe that Ford and Navistar are parting ways when it is in print from one of the two companies. My work takes me places where parts are being made for most all of the diesels currenty in production, I have seen no evidence of instability at all.

 

[WadePatton]

I thought Ford owned Navistar

Hoo boy, now the can work with Mazda and develop the Wankel Diesel!!! (Wankel is the Rotary Engine).



Lord knows they won't try an I-6.



But then it's a rumor. Somebody told me that a magazine was bankrupt a few months ago. Funny how they still keep putting them in my mailbox.

 

[FourBarR]

ford and navstar

just read in the national post one of CANADAS national news papers that navstar has lost the contract for the v6 and will be closing it engine plant in BRAZIL. rumor would seem to be true.

 

[tntway]

maybe FORD is gonna buy them thar cumminGs diesels that they "own"

 

[esommer2500]

Dad also said one or the other companies was going to suffer a huge 'fine' of some sort to the tune of about $400M. Again, this is second hand, and not to disrespect my Dad, but he is getting a little old. Seriously, I don't know any of the specifics, but I for one am keeping an eye on the news to see if I can catch anymore of this.



If there is any merit to this, what kind of impact would it have on Ford's medium duty line? All Cummins? Also wonder what will be used to replace this new 6. 0 that Ford went and designed a whole new transmission for. :-{}



Good stuff. Hope to learn/hear more.



Eric

 

[Cummins4Life]

Dont forget about their new joint venture "blue diamond"



http://www.shareholder.com/nav/ReleaseDetail.cfm?ReleaseID=54519

 

[QRTRHRS]

Eric, the EPA has been coming down hard mostly on Cummins, Cat and Mack for emissions. I know there are big fines involved but don't remember the details. Emissions are the reason the 7. 3 is being replaced by the 6. 0.

 

[Boldt's Wagon]

See:



http://www.autonews.com/news.cms?newsId=3787



and:



http://biz.yahoo.com/djus/021029/1650000887_2.html



Navistar is going to write off $456 million of assorted charges in the 4th quarter, $210 million of which is the Ford announced delay (undefined) for the 4. 5 liter V6 engine. The 6 liter V8 contract goes through 2012.

 

[esommer2500]

From http://www.autonews.com/news.cms?newsId=3787

Ford spokeswoman Jennifer Flake declined to say why the V-6 diesel program is not viable.



There are several potential reasons:



Emissions: Though Navistar claims to have emissions technology that allows use of diesels in vehicles under 8,500 pounds gross vehicle weight rating, no other automaker or engine manufacturer has made a similar claim. General Motors, which is testing a V-6 version of the Duramax diesel, doesn't think it can make the engine meet existing and upcoming emission standards until low-sulfur diesel fuel becomes available in late 2006.





Performance: Navistar's V-6 has a displacement of 4. 5 liters. It may not deliver enough performance at certain speeds to satisfy sport-utility and truck buyers who crave high-horsepower engines.





Cost: The engine may be too expensive to produce and sell at a profit. The V-8 diesel versions of the Ford, GM and Dodge full-sized pickups add between $2,500 and $3,000 over the cost of a gasoline engine.





Appeal: Automakers are nervous about the potential of diesel engines. A recent study by the Chrysler group found that just 6 percent of buyers would consider a vehicle with a clean diesel engine - lower than those who would buy a vehicle with a navigation system. Automakers fear that buyers won't embrace diesels because of the bad image from the 1970s.