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Navistar-Ford Feud Ends With Navistar Indy Plant Closing
Diesel engine manufacturer and Ford Motor Co. supplier, Navistar International, has announced they will be closing both their truck engine production facility and Indianapolis Casting Corp. foundry on July 31, 2009. Navistar’s decision to close their doors coincides with the expiration of their contract with Ford and, as Navistar Vice President Eric Tech put it, “the significant change in Ford’s business plans.” Industry partners since 1979, the riff in Ford and Navistar’s relationship is as much a result of the ailing industry as it is a question of loyalty.
According to sources, Navistar sunk millions into engineering an advanced diesel engine for the new Ford F-150, only to receive word that the Blue Oval intended to outfit the new F-150 with their own in-house developed diesel. Navistar sued Ford to recoup the loss and after a barrage of suits and counter-suits, Ford agreed to pay Navistar an undisclosed amount while Navistar agreed to allow its contract with Ford North America to expire at the end of the year.
Source: Auto News
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It remains to be seen if FoMoCo can come up with a diesel that rivals Navistar. Given Navistar’s experience with Class 8 rigs, what seems more likely is Ford will save money, but give up technical expertise.
The bean counters win, yet again.
Words by Terry Parkhurst on January 27, 2009 at 2:26 pm | #