April 19, 2007
Ford sells its Automotive Components Holdings’ Glass Operations
Dearborn, Michigan – Ford has announced the signing of a Memorandum of Understanding (MOU) with Glass Products, the first step toward the sale of its Automotive Components Holdings (ACH) Glass Operations. The sale includes its plants in Nashville, Tennessee; Tulsa, Oklahoma; and its subsidiary Vidriocar in Juarez, Mexico.
ACH Glass Operations supplies architectural glass, original equipment and aftermarket glass for Ford cars and trucks, and aftermarket glass for vehicles of other makes. Its 1,600 full-time employees supplied original equipment glass for about 2.7 million vehicles last year.
“This MOU is another solid sign of progress for our North American Way Forward plan,” says Mark Fields, Ford’s President of the Americas. “The successful approach Ford is taking with our component operations, including selling or idling our ACH facilities, will help us achieve our commitment to reduce overall operating costs by $5 billion by the end of 2008.”
So far, ACH has sold one business and, with this agreement, has signed MOUs outlining the framework for the sale of four others. The ACH fuel rail business and its El Jarudo subsidiary were sold, while negotiations continue for the sale of a climate control business, fascia and fuel tank business, and propshaft business.
The final agreement with Glass Products, a company formed by a Tulsa-based private investor, is contingent upon a new and competitive agreement with the UAW, as well as state and local government incentives.