Power Stroke production resumes, Ford and International reach temporary agreement
If you listen closely enough, you can hear the gargantuan "Whew!!!" from the glass house on Michigan Ave. Oakland County, Mich., Judge John McDonald has ordered International Truck and Engine to resume shipment of the 6.4L Power Stroke diesel engine that powers the uber-important Ford Super Duty pickup.
This whole mess started when Ford began debiting International's invoices to the tune of $125 million to help pay for expensive warranty costs incurred repairing the notoriously problematic last-gen 6.0L Power Stroke. As it turns out, Ford spent an estimated $1 billion on warranty costs due to a faulty fuel system on these engines supplied by International. For its part, International disputes the $1 billion figure and has refused to help foot the bill. Ford took action by filing a law suit and International retaliated by stopping production of the new 6.4L Power Stroke, which has resulted in the loss of 4,000 units of Ford's most profitable vehicle.
The temporary agreement calls for Ford to stop debiting International's invoices and actually pay the company. In return, the diesel engine supplier will resume shipments of the new 6.4L Power Stroke. The judge also ordered both sides to continue meeting in order to come up with a final solution, but that won't be easy since there's a lot bad blood between these two companies now. We don't know who's right in this case, but we do know this fire will likely flare up again.
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Reader Comments (Page 1 of 1)
amp 10:15AM (3/09/2007)
Don't expect Navistar to give much, if any at all. They know that Ford depends on the Powerstroke for their heavy-duty sales. It's Ford that's in a tight spot, and Navistar will put the screw to them. Just don't expect the next gen super duty to come with an International mill.
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Greek Boy 12:39PM (3/09/2007)
No International next time you say....God we all hope so.
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John D 4:40PM (3/09/2007)
I agree,Ford could have chosen a better engine maker.They couldnt get much worse.This has been obvious since 1994 ,when they went to the electronic 7.3 PSD.Its went downhill since then.
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Daniel 4:52PM (3/09/2007)
Can Ford say: CAT
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mike 9:01PM (3/09/2007)
Duramax!!!!!
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Barney 1:30AM (3/10/2007)
It's not who built the engines but who designed them. I had a Navistar DTA 466 with over 1/2 million miles and the engine had no substantial loss of power or even consume engine oil. It was at one time, only Ford orientated engines that went into Ford trucks, no matter who made them.
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DENNIS 12:20PM (3/11/2007)
FORD/VOLVO OWNS CUMMINS PROBLEM SOLVES
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Mike 8:48AM (3/14/2007)
Cummins is an independent company, not owned by Ford or anyone else. At one time, Ford owned a small percentage of Cummins stock but they never have had controlling interest.
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J Bowers 8:39PM (4/09/2007)
Forget CAT they are in bed with Toyota, wait and see...and as far as dumping Navistar...Ford would be stupid to do that, work out the problems and keep going the 7.3L Power Stroke in my opinion is arguably one of the best medium duty engines ever. They will work it out
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