comment Powerstrokes going away?

torqlvr

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I just read on another site that Ford bought its way out of their contract with International and that as of 12/31/09 there will be no more Powerstrokes bought from them. The article said that nobody knows yet whether they're going to be getting a diesel from someone else or if they're going to stop offering a diesel in their Super Dutys. International will continue to build Ford's Medium Duty truck line for them and will use International diesels in those Medium Dutys. Anybody have anymore info on this?
 

RandyH

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Industry News
Navistar & Ford Settle Diesel Dispute
January 14, 2009
The on-going diesel engine feud between Ford Motor Co. and Navistar International Corp. has apparently been resolved with the announcement of an agreement to restructure ongoing business relationships between the two companies. The agreement apparently settles all existing litigation between the companies.
The feud started in 2007, when Navistar sued Ford alleging breach of contract in a what had been a long-running dispute over a diesel engine supply contract between the two companies. Navistar said Ford broke its contractual promise that it would be the company's primary manufacturer and supplier of V-6 and V-8 diesel engines in North America.
The new deal calls for Ford and Navistar to end their current diesel engine supply agreement effective Dec. 31, 2009. However, the companies will continue to collaborate on a range of ventures, including their existing Blue Diamond Truck and Parts joint ventures.
Navistar will acquire additional equity beyond the 51% it currently holds in the Blue Diamond joint ventures, which will continue to offer F-650 and F-750 medium duty trucks. It will also reportedly assume a majority stake in the Blue Diamond parts support business. As a result of the agreement, Ford will make a payment to Navistar.
Ford and Navistar also will continue their diesel engine supply relationship in South America.
Ford did not say how it would replace the PowerStroke diesels in its line. Industry speculation has Ford possibly building those diesels at a plant in Mexico. Another possibility is Ford's Brook Park, Ohio facility. The future of Navistar’s Indianapolis plant, which built the PowerStroke diesels is also in question. That plant has been idle since early 2008.
“Navistar and Ford benefitted from a successful partnership that provided value to both companies for nearly three decades. However, it’s in our best interests to resolve our conflict and continue our relationship with each other in other areas,” said Dan Ustian, Navistar chairman, president and chief executive officer. “The next phase of our relationship is consistent with Navistar’s strategy to diversify our customer base, while continuing to provide value to both companies through our existing joint ventures and our supply agreement in South America.”
"We are pleased to have reached an agreement with Navistar that we believe is in the best interest of both companies," said Mark Fields, Ford's president of The Americas. "This agreement comprehensively addresses our business relationship with Navistar and will help both companies focus on meeting the needs of our current and future truck customers."
View Industry News
 

Big K

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The Engines might not be made by IH anymore...but they are supposed to retain the Power Stroke Diesel name....as FORD owes the Trademark rights to the name ;)
 

JLDickmon

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Ford and Navistar also will continue their diesel engine supply relationship in South America.
I wonder if this means IH will produce the 4cyl diesel for the F150 in 2011
 

Tbar

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I hope Mexico is not the place. When Freightliner moved to Mexico a few years ago there quality control went to zero.

John Deere has been building their engines down there for quite some time..............lol, yea they suck too.


Tbar
 

Scooter

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Wait, Freightliner used to have quality control? It must have been a really long time ago.
 

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