At my local dealership there has been some lightnings comeing in with blown engines, and the dealership is saying its due to the performance chip, is this true, could a performance chip made for street blow your engine?

 

We all have blown engines, HEEHEEHEE. couldnt resist

 

With the inherent weakness of the 5.4 liter engine
anything is possible.....

 

With JUST a chip - usually as a result of a bad program, burnt spark plug, or just driver stupidity.

 

Ditto.

It's not hard turn down the radio and listen for detonation, or read the spark plugs every now and then or learn when something doesn't sound *just right* or properly maintain the vehicle.

note: there are exceptions, some have just blown for some uknown reason.