Ford division Automotive Components Holdings (ACH) has sold its blow-moulded fuel tank business to Plastic Omnium, with some compulsory redundancies expected out of the 500-strong workforce.
French company Plastic Omnium’s subsidiary Inergy Automotive Systems has purchased the fuel tank operation located at ACH’s Milan, Michigan, plant for an undisclosed sum with completion of the transaction expected to be on 1 June.
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The sell-off is part of Ford’s intention to divest itself of its parts businesses through ACH and the fuel- ank plant sale now means the automaker has just four of the original 17 Visteon plants left to sell.
ACH was formed in 2005 with the aim of spinning off all of its operations formerly run by Visteon, which emerged from bankruptcy last year but Ford took the view it was better to reorganise the plants outside any court procedures.
“We are not disclosing the price, that is confidential,” a Ford spokeswoman in Michigan told just-auto. “Milan is one of the last five plants, there are four to go after this one. One is scheduled for closure within the next 12 months, it is the Indianapolis plant [making] hydraulic steering systems – Ford is going to electronic steering systems.
“That is the goal, to completely outsource [our] supply chain, we are working on making that happen as soon as we can.”
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By GlobalDataThe Ford spokeswoman declined to say whether the sale to Inergy now meant the automaker had totally disposed of its fuel tank business but confined herself to noting the new company would be a significant supply source.
“I am not at liberty to say if it is 100% of fuel tanks or not but they will be a major supplier to Ford,” she said.
Ford also confirmed that “a handful” of employees would be made redundant following the move, although the precise figure was not clear.
“There are a few salaried employees, literally a few, who will be made redundant,” she said. “It is a handful.”
Hourly staff will have the chance to receive a job offer from Inergy as well as the “vast majority” of salaried employees.
The agreement will see the fuel tank operation and many employees move during a three-year period from its current location to a new plant to be build by Inergy in South East Michigan.
Plastic Omnium operates three plants in North America, including one in Adrian, Michigan.
