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Ford and Valeo signed Memorandum
of Understanding (MOU) for Sale of Automotive Components Holding
Sheldon Road Plant, MI
Ford Motor Company and Valeo today
announced a Memorandum of Understanding for Valeo’s purchase of
the Automotive Components Holdings climate control business,
including the Sheldon Road Plant in Plymouth Township, Mich.
This paves the way for a Definitive Agreement and sale of the
business to Valeo as soon as possible.
The Sheldon Road Plant produces
automotive climate control systems and components for a number
of Ford vehicles. It employs about 1,250 people, including
salaried employees leased from Visteon and UAW hourly employees
leased from Ford. It is part of Automotive Components Holdings,
a Ford-managed temporary company formed in October 2005.
“This is an important step for
Ford’s North American operations and the Way Forward
Acceleration Plan, especially as we seek to reduce material
costs over time,” said Mark Fields, president of The Americas
and Ford executive vice president.
“This MOU follows a lot of hard
work by this plant and the entire ACH team,” said Al Ver, CEO
and COO, Automotive Components Holdings, and Ford vice
president. “We have focused on preparing our businesses for sale
to buyers who can grow and invest in them.”
Automotive Components Holdings
produces interior, climate, chassis and powertrain components
and operates 11 plants in the United States and three in Mexico.
“This acquisition is an important
part of Valeo’s strategy to be a global leader in its core
product lines,” said Thierry Morin, chairman and CEO, Valeo.
The final agreement is contingent
upon reaching a new and competitive agreement with the United
Auto Workers. Further information related to the sale will be
available after the sale is completed.
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