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The true end of IH/Navistar?
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Posted by Steven@AZ on February 28, 2007 at 17:03:46 from (24.121.155.253):
From a press release: Navistar International Corp. said Monday it is suspending production of a diesel engine it builds for Ford Motor Co. because Ford has stopped honoring contract terms. Ford uses the engines in its heavy-duty pickup trucks, and Navistar has been an engine supplier to Ford, the No. 2 U.S. automaker, since 1979, Navistar said in a statement. Ford sued Navistar in January in a Michigan state court over a contract dispute regarding warranty costs and engine prices for the 6.4-liter engines, Bloomberg reported. Navistar is Ford’s sole supplier of the engines, called Power Strokes The engines are produced at Navistar plants in Huntsville, Ala., and Indianapolis. A company spokesman said the Indianapolis plant will be idled starting Tuesday, Bloomberg reported. Navistar is the parent company of International Truck and Engine Corp., which makes heavy-duty engines.
On a sidenote, Penkse leasing which buys thousands of trucks a year has gotten very gunshy of Navistar due to the financial shape of the company, and quality concerns.
Thoughts?
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