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We all knew it was coming, now we know the final day. Ford & IH announce they're no longer lovers.
We also now know (for certain) that Ford will be offering yet another diesel in the Superduty this fall, built by someone else. Also, IH will extend it's realtionship with Ford to continue to build the 650/750 for Ford in Mexico:
NAVISTAR AND FORD REACH NEW BUSINESS AGREEMENT
Companies to Continue to Collaborate on Medium Duty Trucks and Other Initiatives
Jan. 13, 2009 Ford Motor Company and Navistar have reached an agreement to restructure our ongoing business relationship and settle all existing litigation between our companies.
As a result of the agreement, Navistar and Ford will end our current diesel engine supply agreement effective Dec. 31, 2009. However, we will continue to collaborate on a range of initiatives, including the existing Blue Diamond Truck and Parts joint ventures. Navistar will acquire additional equity in the Blue Diamond joint ventures, which will continue to offer dealers and customers F-650 and F-750 medium duty trucks, as well as parts support for a variety of Ford products, including Ford's PowerStroke Diesel-equipped trucks. We will also continue our diesel engine supply relationship with Ford in South America. As a result of the agreement, Ford will make a payment to Navistar.
哲avistar and Ford benefitted from a successful partnership that provided value to both companies for nearly three decades. However, it痴 in our best interests to resolve our conflict and continue our relationship with each other in other areas, said Dan Ustian, chairman, president and CEO. 典he next phase of our relationship is consistent with Navistar痴 strategy to diversify our customer base, while continuing to provide value to both companies through our existing joint ventures and our supply agreement in South America.
展e are pleased to have reached an agreement with Navistar that we believe is in the best interest of both companies, said Mark Fields, Ford's president of The Americas. 典his agreement comprehensively addresses our business relationship with Navistar and will help both companies focus on meeting the needs of our current and future truck customers.
Q&A:
What was the dispute about?
The issues involved in the lawsuits filed by Ford and Navistar against one another were numerous and complex. Moreover, the agreement that we have announced today goes well beyond those specific issues. As we have indicated, in addition to resolving and dismissing the lawsuits, Ford and Navistar have agreed to restructure our overall business relationship. We will not be disclosing the details of the settlement at this time, but the two companies believe that we have reached an overall settlement that is fair to each company and that will allow us to go forward to meet the needs of our current and future truck customers.
What are the specific terms of the settlement agreement?
The terms of the settlement agreement are not being disclosed at this time.
Can you provide some examples of how Navistar has diversified its Engine business?
We have taken many significant steps to diversify our product line-up and customer base over the past three years. In 2005, we acquired MWM Diesel Motores, our largest competitor in South America. As a result, we gained an array of engines that better suit the needs of world markets. Since then, we have expanded into China and India via our South American engine business.
Meanwhile, we致e also expanded beyond mid-range engines in North America with the MaxxForce 11/13, our new big bore engine that we introduced this year. Navistar is now able to provide a truly integrated truck and engine offering to the important heavy truck segment. In addition, our traditional mid-range diesel engine business also has diversified and grown due to the strength of Navistar痴 Military business, as well as new business with global and OEM customers.
In addition, Navistar has announced its intent to produce a proprietary 15-liter engine to integrate into its Class 8 vehicles. Further details will be provided at the Mid-America Truck Show in March 2009.
What will happen to Navistar's Indianapolis Plant as a result of this agreement?
We have not made a decision about the future of the facility at this time.
Assuming Ford continues to offer a diesel engine in its trucks beyond the conclusion of the Navistar contract, what type will it be and who will supply it? Is Ford doing its own?
We don't have information about Ford's future product plans
We also now know (for certain) that Ford will be offering yet another diesel in the Superduty this fall, built by someone else. Also, IH will extend it's realtionship with Ford to continue to build the 650/750 for Ford in Mexico:
NAVISTAR AND FORD REACH NEW BUSINESS AGREEMENT
Companies to Continue to Collaborate on Medium Duty Trucks and Other Initiatives
Jan. 13, 2009 Ford Motor Company and Navistar have reached an agreement to restructure our ongoing business relationship and settle all existing litigation between our companies.
As a result of the agreement, Navistar and Ford will end our current diesel engine supply agreement effective Dec. 31, 2009. However, we will continue to collaborate on a range of initiatives, including the existing Blue Diamond Truck and Parts joint ventures. Navistar will acquire additional equity in the Blue Diamond joint ventures, which will continue to offer dealers and customers F-650 and F-750 medium duty trucks, as well as parts support for a variety of Ford products, including Ford's PowerStroke Diesel-equipped trucks. We will also continue our diesel engine supply relationship with Ford in South America. As a result of the agreement, Ford will make a payment to Navistar.
哲avistar and Ford benefitted from a successful partnership that provided value to both companies for nearly three decades. However, it痴 in our best interests to resolve our conflict and continue our relationship with each other in other areas, said Dan Ustian, chairman, president and CEO. 典he next phase of our relationship is consistent with Navistar痴 strategy to diversify our customer base, while continuing to provide value to both companies through our existing joint ventures and our supply agreement in South America.
展e are pleased to have reached an agreement with Navistar that we believe is in the best interest of both companies, said Mark Fields, Ford's president of The Americas. 典his agreement comprehensively addresses our business relationship with Navistar and will help both companies focus on meeting the needs of our current and future truck customers.
Q&A:
What was the dispute about?
The issues involved in the lawsuits filed by Ford and Navistar against one another were numerous and complex. Moreover, the agreement that we have announced today goes well beyond those specific issues. As we have indicated, in addition to resolving and dismissing the lawsuits, Ford and Navistar have agreed to restructure our overall business relationship. We will not be disclosing the details of the settlement at this time, but the two companies believe that we have reached an overall settlement that is fair to each company and that will allow us to go forward to meet the needs of our current and future truck customers.
What are the specific terms of the settlement agreement?
The terms of the settlement agreement are not being disclosed at this time.
Can you provide some examples of how Navistar has diversified its Engine business?
We have taken many significant steps to diversify our product line-up and customer base over the past three years. In 2005, we acquired MWM Diesel Motores, our largest competitor in South America. As a result, we gained an array of engines that better suit the needs of world markets. Since then, we have expanded into China and India via our South American engine business.
Meanwhile, we致e also expanded beyond mid-range engines in North America with the MaxxForce 11/13, our new big bore engine that we introduced this year. Navistar is now able to provide a truly integrated truck and engine offering to the important heavy truck segment. In addition, our traditional mid-range diesel engine business also has diversified and grown due to the strength of Navistar痴 Military business, as well as new business with global and OEM customers.
In addition, Navistar has announced its intent to produce a proprietary 15-liter engine to integrate into its Class 8 vehicles. Further details will be provided at the Mid-America Truck Show in March 2009.
What will happen to Navistar's Indianapolis Plant as a result of this agreement?
We have not made a decision about the future of the facility at this time.
Assuming Ford continues to offer a diesel engine in its trucks beyond the conclusion of the Navistar contract, what type will it be and who will supply it? Is Ford doing its own?
We don't have information about Ford's future product plans
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