Navistar Scrambles As Ford Prepares to Go It Alone

Navistar International Corp. is trying to drum up new buyers for its medium-duty trucks as Ford Motor Co. bows out as a major customer, The Wall Street Journal reports.

For the past 13 years Navistar has been earning roughly $400 million annually making Ford's F-650 and F-750 commercial trucks. But Ford plans next year to begin building those models at its own factory in Avon Lake, Ohio.

The shift will turn Ford, once one of Navistar's biggest customers, into one of the company's biggest direct competitors, the Journal points out.

Medium-duty trucks can haul as much as 33,000 pounds. Navistar's own models are marketed under the DuraStar and WorkStar brand. But the Journal says their share of the North American market has slipped 10 points to 26% in the past two years.

Navistar CEO Troy Clarke tells the newspaper the company is touting its ability to offer customers a broad range of engine and transmission brands with which to create exactly the truck they want. Ford is betting on its ability to cut costs by using powertrains and cabs from its F-350 and F-450 pickup trucks.

Ford tells the Journal it also will tout a new five year, 250,000-mile warranty on powertrains roughly twice the industry standard for such coverage and a network of about 3,000 U.S. dealers who already sell commercial trucks.