Re: Navistar stuff

["Bill Thebert" <bthebert@domain.elided>]

Stephen:

The following appeared six months ago in the April 1998 Binder Bulletin:

----------------------------------
NAVISTAR AND FORD TO PARTNER ON NEW DIESEL ENGINES

In a press release dated March 5, 1998, Navistar World Headquarters
announced that  "Navistar International Corporation has been selected to
negotiate an extended term agreement to supply diesel engines for select
Ford Motor Company . . . light duty trucks and sport utility vehicles". 
This agreement applies to vehicles under 8,500 lbs. GVW, such as the Ford
Expedition, Lincoln Navigator, F-150 and F-250 pickups, and Econoline 150
and 250 vans.  Navistar already supplies the 7.3 liter V-8 diesel engines
that are used in pickups and vans over 8,500 lbs GVW.

Significant details remain to be worked out in this agreement, but it is
expected that the new engine for these smaller applications will be a V-6
diesel.

Navistar managed to beat out "four very capable competitors" in winning
this new business.  Ford and Navistar agreed last year to extend the
existing contract for the 7.3 liter V-8 diesel for an additional 10 years,
beginning in the year 2003.

A memo the following day (March 6) to the Navistar International Dealer
Organization assured employees that Navistar will not allow Ford to use the
DT-466 (I-6) engine in applications over 19,500 lbs, as "we feel strongly
that the I-6 gives Navistar and our dealers a definitive competitive
advantage" over comparable Ford offerings.

The agreement to supply smaller diesels for Ford vehicles which do not
directly compete with any offerings from Navistar is expected to "increase
the engine division's volumes significantly".  Don DeFosset of Navistar
International stated that "this increase in scale will provide the funds
needed to re-invest and remain firmly on top as the worldwide leader in
diesel engine technology".
---------------------------------------

My read is that you will soon be able to get a smaller Navistar diesel
ENGINE in a smaller Ford vehicle -- and nothing more.  I would not expect
Navistar to re-enter the SUV market anytime soon.

Sorry.

Bill Thebert
The Binder Bulletin

----------
> From: stephen.coe <stephen.coe@domain.elided>
> To: ihc-digest@domain.elided
> Subject: Navistar stuff
> Date: Thursday, October 08, 1998 8:21 PM
> 
> I saw this in the July issue of Sport Truck Mag. Quote: "Diesel
Manufacturer
> Navistar International has been selected to negotiate an extended-term
> agreement to provide diesel engens for certain Ford Motor Company
light-duty
> trucks and SUVs,such as the Ford Expedition,Lincoln Navigator,F-150 and
> F-250 pickups,and Econoline 150 and 250 van models. John R.
Horne,Navistar
> chainman,president,and chief executive officer,says,"This colud represent
a
> tremendous groth opportunity for both Navistar and our engine business,as
it
> couldfurther solidify our strong,long-termrelationship with ford and move
us
> into the growing light-truck ans sport/utility vehicle market."
>    Is there a NEW IHC VEHICLE IN THE WORKS FOR ALL OF US IHC
FOLKS?????Just
> thought you would like to spectulate all of this.
> Steve Coe 71 HIC stepside Lassie
> 
>