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Ford turns Navistar from truck business customer to rival

There is a showdown brewing in the medium-duty truck segment next year as Ford prepares to launch its all-new, in-house engineered 2016 F-650 and F-750. It finally marks the end of the Blue Diamond joint venture between Ford and Navistar and, making the two entities direct competitors instead of partners.
Ford announced the end of the joint venture in an investor report in 2011, but it didn't reveal the new F-650 and F-750 until the NTEA Work Truck Show in Indianapolis, IN, in March. Unlike the current, Mexican-built models, the new generation will be built in Avon Lake, OH, starting in mid-2015.
The challenge from Ford comes during a rough patch for Navistar. The company had a $248 million loss in the first quarter, according to The Wall Street Journal, and its medium-duty truck market share is currently down to 26 percent, from 36 percent in 2011. Building the previous-generation Fords brought in about $400 million a year to Navistar, according to the WSJ. To take on its former partner, Navistar plans to offer its International brand of medium-duty vehicles with more engine and transmission options to customers. It even struck a deal with Cummins to put its diesels in some of the models.

Ford recalls 434k vehicles for several unrelated issues

It seems that the hard winter in much of the country has been as rough on some Fords as it has on many people. The Blue Oval is recalling roughly 434,000 vehicles in two separate recalls, and one of them partially caused by the salt used to melt the snow on roads.
The first recall covers 385,750 2001-2004 Escape models in the Midwest, Northeast and Canada because a subframe could rust and eventually fail. This is partially due to the road salt used in those areas, and about 349,000 of the affected vehicles are in the US. To remedy the problem, dealers are installing a reinforcement cross brace on the frame to strengthen them. There has been one crash caused by the failure but no injuries. According to The Detroit News, this is not the first rust-related recall for Ford. It estimates the company has repaired over two million vehicles since 2010 for problems on vehicles related to the iron oxide, including the rear wheel wells of the Freestar minivan.
The second recall covers 48,950 2013-2014 Ford Fusion, Escape, C-MAX and Lincoln MKZ models because welds in their seatbacks don't meet National Highway Traffic Safety Administration standards. The fault affects the front seats, and the sub-standard welds joining the setback to the recliner could increase the chance on injury. There have been no reported injuries or accidents caused by the problem, but there are 42,972 affected vehicles in the US and 4,744 in Canada.

2015 F-150 launch to curb Ford profits?

Ford is making a big bet on aluminum with its new 2015 F-150, and it's possible that the decision will hurt the company financially, at least in the short term. After earning a record $8.6 billion in 2013, the Blue Oval does not expect to set another record in 2014. According to Automotive News, that's "largely attributable to F Series," says Bob Shanks, Ford's Chief Financial Officer.
To retool for the new F-150, Ford will idle its Dearborn Truck Plant in Michigan for 11 weeks and the Ford Kansas City Assembly Plant in Missouri for 2 weeks. "3 of the 13 overall weeks occur during what normally is our summer shutdown timeframe," said Mike Levine, Ford Trucks Communication Manager, in an email to Autoblog. The extra 10 weeks will be preparing for the more aluminum-intensive construction for the trucks and will mean over 2 months of no F-150s being made. For comparison's sake, Chrysler boss Sergio Marchionne just confirmed that the 200 plant in Sterling Heights, MI will be down for 30 days to retool for the new model, but obviously there are many more F-150 production variables than for the midsize sedan.
Levine notes that Ford is already running three shifts at both plants, and says the automaker has plans to ensure that there is adequate supply of the full-size pickups during the retooling process. The company does not want to suffer a shortage of the vehicle that accounted for 31-percent of its 2013 US sales and an even bigger percentage of its profits.