Ever since Cerberus bought a controlling interest in Chrysler, many have openly speculated that the private equity fund would ultimately split up the company and sell it off. Those rumors have intensified in the last six months as the troubles of Chrysler and the rest of the industry have grown. Of the three brands in the stable, Jeep is generally considered to be the only one that has any significant value to potential buyers. Interestingly, the same thing was true in 1987 when Chrysler bought
It's an epic poem that could have been written by Byron: you suffered a nasty breakup and met a new girl, you dated for a while, things were looking outstanding, you proposed... and then the bottom dropped out of the medium-duty truck business. We've seen it all before. And now that it's happened, Navistar has backed away from it's non-binding commitment to purchase GM's medium-duty truck operations.
You may recall that Navistar supplies Ford with diesel engines for its Super Duty trucks. You may also recall that the last two diesel engines used in Ford's Super Duty pickups (the current 6.4L Power Stroke and last generation's 6.0L) have had some quality problems. The 6.0L Power Stroke was known for problems stemming from defective fuel injectors, while the newer 6.4L has had one recall related to high exhaust temperatures that could ignite diesel fuel in the particulate filter, causing an im