Originally Posted By: Onmo'Eegusee
Could not get it to meet emissions regulations.
That's an easy answer to toss out, but its not really true. The basic structure of the engine was proven, and you can get ANY engine bottom end (except maybe an old Detroit 2-stroke) to meet emissions with enough modification to the parts that handle the fuel and air: heads, manifolding, cam/valve train, ECM, injectors, turbo, etc. All that would have been a "bolt on" solution to making the 7.3L block and rotating assembly continue serving well as far into the future as they would have wanted. But it wouldn't have been cheap, and it was apparently decided that an all-new, smaller, and unproven design would be more profitable than spending the money/design effort on upgrading the 7.3. Obviously that didn't turn out to be true in this case.
Don't get me wrong, I'm not anti-innovation and the idea of making the whole package smaller and lighter has some merit.... IF you don't cut too many corners on the new design. And truth be told, they could have made mistakes on the new emission-compliant fuel system for the 7.3 that would have caused the same problems with it. But it seems less probable to me.