Reuters is reporting that Navistar International's stopped shipping big 6.4-liter Power Stroke diesel engines to FoMoCo because of a "contract dispute." The big f-ing engine is the power plant that gives the big F-Series Super Duty the get-up-and-go it needs to — you know — help the automaker become profitable again. Remember, the F-Series is the most profitable thing Ford sells, it has like a 50% market share in the Heavy Duty market, and based on estimates we've seen, FoMoCo makes an average of around $10,000 in profits on each diesel F-Series SD they ship. That being said, how bad could a shipping stoppage be for the beleaguered, bemoaning and bemortgaged (sure, why not) auto company? Bear Stearns pegs the cost of a greater-than-one-month disruption at "$11.6 billion in annualized revenue loss for Ford." That's a hella heap of cash. Oh, and, if you're wondering why the Power-Stroke-It engine sounds so familiar to you — it may be because you saw the commercial for it during the Super Bowl pre-game (see it again below the jump). Marketing something in the Super Bowl you don't have to sell? Sounds like money well spent to us.
Navistar stops engine shipments to Ford over dispute [Reuters via Chicago Business]
Related:
Ad Watch: Ford's Super (Duty) Bowl Commercial Teasers Are Techie Porn [internal]