April 3, 2007

Ford sells two automotive components business units

Dearborn, Michigan – Ford has announced that it has sold its Automotive Components Holdings’ fuel rail business in Mexico and has signed a memorandum of understanding for the sale of its propshaft business in Michigan.

The fuel rail business in El Jarudo, Mexico is the first sale of an Automotive Components Holdings (ACH) business; Ford says the sale “represents significant progress in delivering on its strategy to fix and sell or idle its operations.” The business was sold to Cooper-Standard Automotive.

Under the agreement, ACH, a Ford-managed temporary company, transferred ownership of its equity interest in Manufactura El Jarudo, along with related U.S. assets, to Cooper-Standard on April 1, 2007. El Jarudo employs about 450 hourly and salaried employees.

Meanwhile, Neapco LLC, a North American affiliate of the Chinese company Wanxiang Group, signed a memorandum of understanding for the production of propshafts, currently produced at ACH’s plant in Monroe, Michigan.

The proposed operation would require a facility one-fifth the size of the current plant, and a search for a smaller facility to house the propshaft operations is underway. The Monroe plant produces driveshafts, halfshafts, other driveline products and catalytic converters; most of its current workforce of 1,200 is comprised of salaried employees leased from Visteon and UAW hourly employees leased from Ford. The deal is contingent upon a new and competitive agreement with the UAW, and state and local incentives.

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