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Ford settles class action suit over defective Navistar diesel engines

The 2003 Ford F-Series Super Duty (shown above) introduced the 6.0-liter Power Stroke diesel supplied by Navistar, and while that is an engine Ford would love to forget, it's now one step closer to putting that particular problem behind it. Automotive News is reporting that Ford has settled a class-action lawsuit brought on by problems with this engine that started right out of the gate and ultimately broke up the 30-year relationship between Ford and Navistar.
Owners and lessees of 2003-2007 Super Duty trucks and E-Series vans equipped with the 6.0-liter Power Stroke are eligible for deductible reimbursements of between $50 and $200 from the original five-year/100,000-mile engine warranty, while Ford is paying out as much as $825 for out-of-warranty engine repairs. These repairs may include the exhaust gas recirculation (EGR) cooler, EGR valve, oil cooler, fuel injectors and turbocharger, but are only covered if the components failed before six years or 135,000 miles.
In total, Ford has agreed to pay about 50 percent of the value of the repairs and deductibles paid by its customers who submit a claim before the end of this year, and $150,000 is going to the 16 named plaintiffs in the case; Navistar was not included in the lawsuit.

Ford drops Focus RS teaser ahead of Feb 3 reveal

Ford is trying to get us hyped for the unveiling of the latest Focus RS on February 3 with this new video teaser. The clip showcases the hot hatch doing some big slides in the wet and dry during testing in Europe and the US, and it definitely makes us even more curious about what the Blue Oval has in store with the RS. Even in this short teaser, Ford continues to dress the more aggressive nose of the Focus RS in camouflage, like the previous test cars. Unfortunately, what's going on under all of that concealment remains a bit of a mystery. Rumors suggest the RS likely uses a tuned version of the Blue Oval's 2.3-liter turbocharged four-cylinder estimated to make between 325 and 350 horsepower. A speculated torque-vectoring all-wheel-drive system should keep fears of torque steer at bay, and larger brakes on the test mules indicate that bringing it all to a halt shouldn't be a problem, either. We do know that the hotter Focus will be among the "more than 12" vehicles that the new Ford Performance division will develop through 2020, and the RS will come to the US for the first time. However, US-spec RS models will likely be imported from Europe, which will keep numbers here low and will mean prices estimated to be around $30,000 or more. Until the official specs become available, at least enjoy watching this hot hatch's ability to slide.

Weekly Recap: Marchionne's Manifesto again calls for industry consolidation

Sergio Marchionne isn't taking no for an answer. Despite public rebuffs from General Motors and Ford, the leader of Fiat Chrysler Automobiles continues to push for consolidation within the auto industry. His latest assertion came Wednesday when he said a combination of FCA with another automaker could net savings of $5 billion or more annually. No, this isn't about selling his company, he claimed, it's about cutting costs. Put simply, the auto industry wastes money, Marchionne said during FCA's earnings conference call. Companies invest billions to develop basic components that all cars use, but many consumers don't care how they work or recognize the differences. "About half of this is really relevant in terms of positioning the car in the marketplace," he said. "The other half, in our view, is stuff which is neither visible to the consumer nor is it relevant to the consumer." In 2014, top automakers spent more than $100 million on product development, FCA estimated. Marchionne said consolidation could save up to $1 billion on powertrains alone, noting that almost every automaker offers four- and six-cylinder engines. Not everyone has to make their own, he contended. "The consumer could not give a flying leap whose engines we are using because they are irrelevant to the buying decision." That's pretty provocative for enthusiasts, but less so for average consumers. Still, there are major differences in power and efficiency ratings, even among similar engines. Skeptics could argue consolidation would also weaken competition and reduce choices for car buyers. Marchionne stressed his presentation, curiously entitled Confessions of a Capital Junkie, wouldn't require closing factories or dealerships. It's not his final "big deal" as CEO, intent to sell FCA, or a way to elevate his company up the automotive food chain. He claims he wants to fundamentally change the industry and its habit for burning cash. "The horrible part about this, and the thing that I find most offensive, is that the capital consumption rate is duplicative," he said. "It doesn't deliver real value to the consumer and it is in its purest form, economic waste." Other News & Notes Ford Profits dip in first quarter Ford profits fell $65 million to $924 million in the first quarter, hampered by slight dips in revenue and sales.