Ford and Johnson Controls have signed a memorandum of understanding for the sale of Automotive Components Holdings’ interiors business and its Saline, Michigan, plant.
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Saline covers 1.6m sq ft on 189 acres. In 2005, according to Ford, the plant won international supplier acclaim for two injection moulding processes and other plastics innovations.
Products include instrument panels, complete cockpits, door panels, door trim, and consoles for a variety of Ford vehicles.
“Through this agreement Johnson Controls would be able to provide further support to [Ford]. This acquisition would also complement Johnson Controls’ global growth plans for our interiors business by expanding our global interiors manufacturing capacity,” said Jeff Williams, head of the supplier’s North American interior business.
Ford set up Automotive Components Holdings in October 2005 to ensure a flow of components and systems while ACH facilities, formerly owned by Visteon, were prepared for sale or closure.
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By GlobalDataACH currently has 11 plants and around 11,000 leased hourly and salaried employees.
“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,” the automaker said in a statement.
“We continue to make good progress on our plan to sell or close most of our ACH facilities by year-end 2008,” added Mark Fields, president of The Americas and Ford executive vice president. “This is an important element of Ford North America’s return to profitability.”
ACH has sold two operations in Mexico, and now has six MOUs in place for the sale of seven additional plants as well as one business from an eighth.
Al Ver, CEO and COO of Automotive Components Holdings said: “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 subject to the usual closing terms as well as a new agreement between Johnson Controls and the United Auto Workers union.
