Ford and Johnson Controls Sign MOU for Sale of Automotive Components Holdings' Saline Plant and Interiors Business
o This MOU represents another significant step forward in Ford's strategy to sell or close its Automotive Components Holdings (ACH) operations while reducing material costs over time.
o ACH has sold two operations in Mexico, and now has six Memorandums of Understanding for the sale of seven additional plants as well as one business from an eighth plant.
o Johnson Controls is a global, diversified company and a Tier I auto supplier with more than 60 consecutive years of sales increases.
DEARBORN, Mich., Nov. 15 - Ford Motor Company (NYSE:F) and Johnson Controls today announced a Memorandum of Understanding (MOU) outlining the framework for the sale of the Automotive Components Holdings interiors business and its Saline, Mich., plant.
"We continue to make good progress on our plan to sell or close most of our ACH facilities by year-end 2008," said Mark Fields, president of The Americas and Ford executive vice president. "This is an important element of Ford North America's return to profitability."
The Saline Plant covers 1.6 million square feet on 189 acres. In 2005, the plant won international supplier acclaim for two injection molding processes and other plastics innovations. Its product mix includes instrument panels, fully contented cockpits, door panels, door trim, and consoles for a variety of Ford vehicles.
"Automotive Components Holdings is focused on the fundamentals of manufacturing, and delivering significant improvements in quality, delivery and cost at its operations," said Al Ver, CEO and COO of Automotive Components Holdings and Ford Motor Company vice president. "We are pleased to partner with Johnson Controls on a transition for our interiors business that is based on a sustainable business case."
The sale is contingent upon reaching definitive agreements, as well as a new and competitive bargaining agreement between Johnson Controls and the United Auto Workers.
"Through this agreement Johnson Controls would be able to provide further support to Ford Motor Company. This acquisition would also complement Johnson Controls' global growth plans for our interiors business by expanding our global interiors manufacturing capacity," said Jeff Williams, group vice president and general manager of North America for Automotive Experience of Johnson Controls. Johnson Controls is a diversified company with more than 140,000 employees worldwide and 17 years of consecutive earnings increases.
Automotive Components Holdings was established by Ford Motor Company in October 2005 to ensure the flow of quality components and systems to Ford while ACH facilities, formerly owned by Visteon, were prepared for sale or closure. Today ACH has 11 plants and is supported by about 11,000 leased hourly and salaried employees.
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 250,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo and Mazda. The company provides financial services through Ford Motor Credit Company.
For more information regarding Ford's products, please visit www.fordvehicles.com.
Source: Ford Motor Company
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