It's never a great idea to be on bad terms with your suppliers. But Navistar, the company that provides the new 6.4 litre dual-turbo diesel powerplants to Ford for use in their Super Duty pickups, has stopped shipping the engines citing non-payment for previous orders as the reason.
The Super Duty makes up about 40% of the automakers sales of F-Series pickups, and most are equipped with the new diesel engine.
Apparently, Ford may have decided to stop payment because Navistar was slacking on their responsibility to cover a portion of warranty repair costs on the old six-litre diesel engine. Ford also alleges that Navistar raised prices for the engine without any reasonable explanation. The two companies are locked into a nasty legal battle.
It's been less than a week since the engines stopped being shipped, and Ford is cutting production of the highly profitable pickups. As of today, the sole plant which builds the trucks in Louisville, Kentucky will feel the effects of the cutbacks, with no further production this week and only one daily shift as opposed to three starting Monday.
photo:Ford
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The Super Duty makes up about 40% of the automakers sales of F-Series pickups, and most are equipped with the new diesel engine.
Apparently, Ford may have decided to stop payment because Navistar was slacking on their responsibility to cover a portion of warranty repair costs on the old six-litre diesel engine. Ford also alleges that Navistar raised prices for the engine without any reasonable explanation. The two companies are locked into a nasty legal battle.
It's been less than a week since the engines stopped being shipped, and Ford is cutting production of the highly profitable pickups. As of today, the sole plant which builds the trucks in Louisville, Kentucky will feel the effects of the cutbacks, with no further production this week and only one daily shift as opposed to three starting Monday.
photo:Ford