Alan Mulally has a sit-down with his counterpart at International
Ford and their truck diesel supplier International have been bickering for months about pricing and splitting warranty costs on the engines that International produces for the Super Duty pickups. It got so bad that International stopped producing the engines that power three quarters of those trucks until a judge ordered them to start again. Now Ford CEO Alan Mulally is taking into his own hands to try and fix the dispute. Recently he sat down face to face with the CEO of International Truck and Engine Daniel Ustian.The meeting was revealed during a hearing before the judge that in February ordered International to supply engines again. Ford president Mark Fields also met with International engine group president Jack Allen. Ford desperately needs to resolve this problem because constrained supplies of the diesels contributed heavily to the nine percent decline in Ford Sales in March. The 6.4L V-8 is by far the most efficient engine in the Super Duty lineup and at the same time has the greatest hauling and towing capacity.
[Source: AutoWeek]
Reader Comments (Page 1 of 1)
Greg A. 7:14AM (4/09/2007)
Though Autoblog, at least, has reported it before, this post omits the fact that International stopped shipping diesel engines to Ford after Ford started withholding some of the money it was supposed to give to International in payment for the engines, claiming that the withheld money was to cover its warranty costs for International diesel engines previously delivered to Ford. The judge who ordered International to resume deliveries to Ford also ordered Ford to stop withholding money from International.
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