Ford and Linamar Corporation on Wednesday announced the sale of the Automotive Components Holdings’ Power Transfer Unit (PTU) business and its Converca I Plant in Nuevo Laredo, Mexico. Completion is expected on 1 September.
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The ACH Converca I Plant is among the leading manufacturers of PTUs in the North American auto industry. As part of the deal, assets of the plant will be transferred to Linamar. The plant employs about 500 employees.
Other products produced at the plant are propshafts, stabiliser bars and steering gears. Stabiliser bar production is scheduled to end late this year, while the propshaft and steering gear production will continue to be manufactured at Converca for the immediate future.
The sale will be the second for ACH this year. The first sale, announced in April, involved the fuel rail business and the ACH Mexican subsidiary in El Jarudo. MOUs have been signed and discussions are underway for the sale of six other plants and one business from a seventh plant.
“We remain focused on selling or idling our operations,” said Al Ver, ACH CEO and COO and Ford Motor Company vice president. “We are pleased with our progress, but aware that we still have much to do in a short time.”
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By GlobalDataACH is a temporary company, managed and established by Ford in October 2005 to ensure the flow of components and systems to Ford while ACH prepared its component operations for sale or idling.
