Navistar blames charge on aborted Ford order


By Richard Truett
Automotive News / October 29, 2002

Ford Motor Co.'s about-face on plans to offer a V-6 diesel engine in several light-duty truck models for the 2002 model year accounts for nearly half of the $456 million restructuring charge announced Tuesday by Navistar International Corp.

Navistar said it signed a contract with Ford in 2000 that called for the Warrenville, Ill., diesel engine and truckmaker to start delivering 4.5-liter V-6 diesel engines for use in 2002 model F-150 pickups, Econoline van, Expedition and Lincoln Navigator sport-utilities.

Navistar built a factory in Huntsville, Ala., to build the V-6 engines.

Ford will not say why the V-6 diesel program has been delayed or canceled. But the program accounts for $210 million of Navistar's $456 million charge, to be taken in the company's fourth quarter.

In a statement, Navistar said: "Ford has advised the company that their current business case for these vehicles is not viable."

Ford spokeswoman Jennifer Flake declined to say why the V-6 diesel program is not viable.

There are several potential reasons:



Emissions: Though Navistar claims to have emissions technology that allows use of diesels in vehicles under 8,500 pounds gross vehicle weight rating, no other automaker or engine manufacturer has made a similar claim. General Motors, which is testing a V-6 version of the Duramax diesel, doesn't think it can make the engine meet existing and upcoming emission standards until low-sulfur diesel fuel becomes available in late 2006.


Performance: Navistar's V-6 has a displacement of 4.5 liters. It may not deliver enough performance at certain speeds to satisfy sport-utility and truck buyers who crave high-horsepower engines.


Cost: The engine may be too expensive to produce and sell at a profit. The V-8 diesel versions of the Ford, GM and Dodge full-sized pickups add between $2,500 and $3,000 over the cost of a gasoline engine.


Appeal: Automakers are nervous about the potential of diesel engines. A recent study by the Chrysler group found that just 6 percent of buyers would consider a vehicle with a clean diesel engine - lower than those who would buy a vehicle with a navigation system. Automakers fear that buyers won't embrace diesels because of the bad image from the 1970s.

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1999 F-150 AirRaid, 4.10 gears, tint, superchip, see my gallery for more.

I betcha it's cost and emissions. You need to howler at isell to find out
for sure. I now most companies right now are trying to take cost out
of their vehicles, a diesel adds too much to the price. Emissions are going to
change a lot of plans for diesels. That's my story and I'm sticking to it!!hehehehe

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...... BRIAN ......

it bites it really bites

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all bow down to the one who choses to shift cause i am a Crazy Gear Rower,
supported by "ares wipe when that fart becomes a,squirt there's ares wipes"

found out the real reason for dose not feel that the test motors where quiet and clean enought for the avarage soccer mom to buy and drive,also suppostly not enoght market yet for it this might cause international to go into bankrupticy still underdecided,the lil diesel for the rangers has also be put aside for some more time to rethink the idea of it, this bites this really bites

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all bow down to the one who choses to shift cause i am a Crazy Gear Rower,
supported by "ares wipe when that fart becomes a,squirt there's ares wipes"