Ford and Valeo have announced a Memorandum of Understanding for Valeo’s purchase of the Automotive Components Holdings climate control business, including the Sheldon Road Plant in Plymouth Township, Mich.
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This paves the way for a definitive agreement and sale of the business to Valeo as soon as possible.
The Sheldon Road plant produces automotive climate control systems and components for a number of Ford vehicles. It employs about 1,250 people, including salaried employees leased from Visteon and UAW hourly employees leased from Ford. It is part of Automotive Components Holdings, a Ford-managed temporary company formed in October 2005 when Ford ‘bought back’ some Visteon plants in a Visteon bailout deal.
“This is an important step for Ford’s North American operations and the Way Forward Acceleration Plan, especially as we seek to reduce material costs over time,” said Mark Fields, president of the Americas and Ford executive vice president.
“This MOU follows a lot of hard work by this plant and the entire ACH team,” said Al Ver, CEO and COO, Automotive Components Holdings, and Ford vice president. “We have focused on preparing our businesses for sale to buyers who can grow and invest in them.”
Automotive Components Holdings produces interior, climate, chassis and powertrain components and operates 11 plants in the United States and three in Mexico.
“This acquisition is an important part of Valeo’s strategy to be a global leader in its core product lines,” said Thierry Morin, chairman and CEO, Valeo.
The final agreement is contingent upon reaching a new and competitive agreement with the United Auto Workers.
