May 1, 2007

Ford to sell power transfer unit business in Mexico

Dearborn, Michigan – The Ford Motor Company and Linamar Corporation have announced a proposal outlining the sale of Ford’s Automotive Components Holdings’ (ACH) Power Transfer Unit (PTU) business in Nuevo Laredo, Mexico. The plant produces PTU units for all-wheel drive vehicles.

The proposal marks the sixth such agreement reached in the last five months. ACH sold its fuel rail business and El Jarudo subsidiary in early April, and is negotiating the sale of its climate control business and plant in Plymouth, Michigan; fascia and fuel tank business and plant in Milan, Michigan; its propshaft business, currently produced at a Monroe, Michigan plant; and its glass business and plants in Tennessee, Oklahoma and Mexico.

The PTU plant also produces propshafts, stabilizer bars and steering components. The production of stabilizer bars is scheduled to end late this year, and ACH is considering options for the steering component and propshaft production.

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