Big_Zirp

So many phone calls later I got no where. THe dealership is going to give me a great deal so they said...the $7500 engine replacement, they a re going to discount it a wopping $350. Whewww hewww!
FORD does not feal resposible and even though I had it in there before the warranty it was not diagnosed til after, so it doesnt follow their guidelines.....A lil advice to anyone, if you have a problem when you vehicle is under warranty, pester the hell out of them.
I did fine a local shop and a local rebuilt engine dealer. I can get a rebuilt engine with 3yr, 100,000 mile warranty (parts and labor) for $2995 and a local shop will install for $1200. Sounds like a done deal.

2nd150

If you have documentation that this has been an issue since 40,000mi Ford should do better than that. My 5.4 in a 2007 was replaced at just over 36,000 mi for the same issue-about a year ago-under warranty. Someone at work has an 08 that had the engine changed at 34000mi for the same thing.Talk to a service manager or contact a ford rep.

primalurges

Has the dealership explained to you why a bad camshaft requires the the entire engine be replaced instead of just the camshaft and maybe valves? I ask because I heard this several times on this forum and it just sounds like dealer trying to rip people off. I've owned cars with worn camshafts and even chains that have come loose and the worst it's ever been has resulted in valves having to be replaced and maybe camshaft but never the entire engine.

Mod (Ret.)

If you have some documented proof that you took it in for a related issue, I would not give up so easily. Ask (politely) for the regional Ford service rep and talk to he/she (again, politely). You may not get a free engine replacement, but you may get a much better discount.

I feel for you; it irks me that Ford knows about the issues of early spark plug problems and cam phaser problems on these 5.4's, but do their best to avoid any issues after the warranty expires. I got into a huge shall we say, discussion" on another Mustang forum, because a few Ford mechanics said I should not question design done by the Ford engineers. I won't go into details on that subject (had to do with oil recommendations), but when I mentioned the 5.4 and it's known issues, suddenly they stopped responding. Go figure. No one is perfect, but with these issues, Ford could have done better to help out when these things failed.
I document the crap out of my 2005; I have every oil and oil filter receipt, every part purchase, and every repair purchase that was done by an outside repair facility if I did not do it. Folks laugh at me for being so **** about this, but I feel I'm protecting myself should a related failure happen, such as what you are experiencing.

Good luck. Keep us informed on what the outcome happens to be.