- Feb 26, 2007
Aw, Snap! Ford supplier stops production of Super Duty's Power Stroke diesel engine
If it weren't for bad luck, Ford would have no luck at all. The single largest profit-source for Ford Motor Company would be the F-Series Pickup and the Power Sroke diesel Super Duty is a huge chunk of that revenue. Navistar International Engines has powered the Super Duty since 1979, which makes them a large component of Ford's success in the market. The good Karma between Ford and International started to go sour with the quality issues surrounding the 6.0L Power Stroke diesel in the last generation of Super Duty trucks. Relations got worse when Ford recently sued International, saying it was not complying with warranty cost-sharing agreements. Ford also contended that International unjustifiably raised prices on its engines. Now International has decided to stop supplying the all-new 6.4L engine that powers the 2008 Super Duty, claiming that Ford is not honoring the contract terms under which the engines are built.
Navistar has given no indication how long this impasse could last, but every second a Super Duty isn't being assembled by Ford workers is money down the drain. With the cash problems Ford already has, this could get ugly quick. We're guessing Ford doesn't have much choice but to kiss and make up with International in order to keep these too-important Power Stroke Super Duty trucks rolling off the assembly line.