Dearborn Michigan – Ford Motor Company and its subsidiary Automotive Components Holdings (ACH) have announced that a planned sale of ACH’s interiors business and its plant in Saline, Michigan has been terminated. The companies had previously signed a Memorandum of Understanding for the sale with Johnson Controls in November, 2007.
The companies have been in talks since the signing and said in a statement that the decision to terminate the memorandum was reached by mutual consent. The companies said that deteriorating business conditions, higher gasoline prices, weakness in the housing industry and a slumping market for trucks and SUVs, coupled with circumstances unique to the deal, all contributed to the end of negotiations toward a final agreement.
“We’re disappointed, but due to a variety of factors, the timing was not right to complete this particular deal,” said Bill Connelly, CEO of ACH. “Johnson Controls is, and will remain, a valued partner of Ford and ACH.”
ACH said that it will consider all options and that no decisions have been made about the future of the Saline Plant, except that its ongoing operations will continue beyond 2008 and the company will continue to restructure its interiors business to make the plant more competitive and attractive to potential buyers. The plant produces instrument panels, cockpits, door trim and consoles for a variety of Ford vehicles.