Aug 16, 2007

Ford sells another automotive components plant

Dearborn, Michigan – Ford Motor Company announced the sale of the Automotive Components Holdings’ Power Transfer Unit (PTU) business and its Converca I Plant in Nuevo Laredo, Mexico to Linamar Corporation. The sales transaction is expected to be completed on September 1.

The ACH Converca I Plant is among the leading manufacturers of PTUs in the North American auto industry. The plant employs about 500 employees.

Other products produced at the plant are propshafts, stabilizer bars and steering gears. Stabilizer 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.

“This sale is another demonstration of our commitment to achieve the material cost goals in our Way Forward strategy,” said Mark Fields, president of The Americas and Ford executive vice president. “This is critical as we work toward our goal of profitability in North America by 2009.”

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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