Ford Dealers Sucked Into Navistar Dispute
The court case pitting Ford against engine maker Navistar continues, as both sides wrangle over liability for $800m worth of warranty work performed on Navistar's 6.0-liter diesel. According to Dealer Magazine's resident legal expert, Navistar's looking to lay blame for the big ass bill at the doorstep of Ford dealers for performing unnecessary repairs, failing to follow proper repair procedures and, in some cases, not actually doing claimed repairs. Rich Sox says Navistar's subpoenaed 24 dealers (his clients) in Florida, Georgia, Ohio and Texas requesting thousands of pages of warranty documents. Sox' dealers aren't happy about the prospect of Ford and Navistar pawing over their warranty records– not because they have anything to hide, right? "Of course, we have to be careful how we object to these subpoenas. It would not go over very well with the judge to argue that the warranty records shouldn’t be produced because dealers may have done something wrong." Sox' strategy: resist the legal request on the grounds of confidentiality, inappropriateness (go after Ford first) and, failing all that, squeeze some money from the deal (make sure Navistar pays for the time and expense of assembling the paperwork). And that's why Sox gets the big bucks.