Ford and Glass Products Reach MOU for Automotive Components Holdings Glass Business
DEARBORN, Mich., April 18: Ford Motor Company (NYSE:F) and Glass Products today announced the signing of a Memorandum of Understanding (MOU), the first step toward the sale of the Automotive Components Holdings (ACH) Glass Operations and its plants in Nashville, Tenn., and Tulsa, Okla., and its subsidiary Vidriocar in Juarez, Mexico.
ACH Glass Operations supply architectural glass, original equipment and aftermarket glass for Ford cars and trucks, and aftermarket glass for vehicles of other makes. It supplied original equipment glass for about 2.7 million vehicles last year. About 1,600 full-time employees work in the operations. "This MOU is another solid sign of progress for our North American Way Forward plan," said Mark Fields, Ford's President of The Americas. "The successful approach Ford is taking with our component operations -- including selling or idling our ACH facilities -- will help us achieve our commitment to reduce overall operating costs by $5 billion by the end of 2008."
With this agreement, ACH has sold one business and has signed MOUs outlining the framework for the sale of four others. The ACH fuel rail business and its El Jarudo subsidiary were sold recently. Negotiations are continuing regarding the climate control business and the Sheldon Road Plant near Plymouth, Mich.; the fascia and fuel tank businesses and the Milan (Mich.) Plant; and the ACH propshaft business, which currently is one of the products produced at a Monroe, Mich., facility.
"We are particularly pleased to announce a MOU for the sale of the Glass Operations," said Al Ver, ACH CEO and COO and Ford vice president. "Sale of these operations has been in various stages of discussion and negotiation for many years. We believe this agreement represents the best option for the continued success of these facilities in the years ahead."
Glass Products was formed by Robert Price, a Tulsa-based private investor and experienced business leader with a strong record of success in the natural gas industry, logistics, and medical facility management.
"I am excited by this new venture, especially with its potential of growth for a business that has been a hallmark of the Tulsa business community for many years," said Price, who serves as chairman of Glass Products.
The final agreement is contingent upon a new and competitive agreement with the UAW, as well as state and local government incentives.
ACH is a temporary company established and managed by Ford to ensure the flow of quality components and systems while preparing the automotive component operations for sale or idling. Today, the $4 billion company and its 12 plants are supported by 12,000 full-time employees, mostly leased from Visteon or Ford.
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles in 200 markets across six continents. With more than 280,000 employees and more than 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford's products, please visit http://www.fordvehicles.com/.
Source: Ford Motor Company
CONTACT: Media: Della DiPietro, +1-313-755-2432, +1-313-720-8095, ddipietr@ach-llc.com, Investment Community: Larry Heck (Equity),
+1-313-594-0613, lheck@ford.com, Rob Moeller (Fixed Income),
+1-313-621-0881, rmoeller@ford.com, Ford Motor Company, Shareholders:
+1-800-555-5259, +1-313-845-8540, stockinf@ford.com
Web site: http://www.fordvehicles.com/
