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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 Q3 pretax profits drop to $1.18B

Following positive third quarter financial results recently from General Motors, rival Ford took a tumble in Q3. The automaker posted pre-tax profits of $1.18 billion, compared to about $2.59 billion in Q3 2013, a drop of around 54 percent. Net income also suffered with $835 million made in the quarter, versus $1.272 billion last year, a decline of about 34 percent. The Blue Oval blamed the gloomy figures on three reasons in its release: "lower volume, higher warranty costs and adverse balance sheet exchange effects."
There were problems of one kind or another in practically every region. North America experienced higher warranty costs than expected, partially due to recalls. The sales volume for the quarter was 665,000 units, versus 725,000 in Q3 2013, and pre-tax results amounted to $1.41 billion versus $2.296 billion last year.
South America and Europe both posted worse pre-tax results than last year. On the bright side, European volume was up slightly to 321,000 vehicles, from 303,000 in Q3 2013. The Middle East and Africa also lost $15 million, but that was an improvement compared to the $25 million loss previously experienced in this region.

Ford Transit gets outfitted for prison duty

Between the Taurus-based Police Interceptor, the Explorer-based Police Interceptor Utility and the F-150 and Expedition special service vehicles, Ford has no lack of offerings for law enforcement. And now it has one more in the form of the new Transit PTV.
Based on the fullsize Transit van, the Prisoner Transport Vehicle can move as many as 12 prisoners in three separate compartments between detention facilities. Created in collaboration with Pennsylvania-based Havis Prisoner Transport Solutions and with input from Ford's Police Advisory Board, the Transit PTV takes advantage of the Transit's considerable configuration options that include three roof heights, two wheelbases, three lengths and four body-styles - not to mention engine options that include the flex-fuel 3.7-liter V6, 3.5-liter EcoBoost and 3.2-liter Power Stroke diesel.
"Transit PTV is the latest example of Ford's deep commitment to helping provide law enforcement agencies with capable vehicles. This concept proves Transit is upfit-ready and designed to Built Ford Tough standards," said Jonathan Honeycutt, Ford police marketing manager. "Many Police Advisory Board members have had the chance to drive this vehicle and they are excited about it. This new vehicle is tough, smart and efficient - ideal for the needs of law enforcement agencies."