The ACH Converca I Plant is among the leading manufacturers of PTUs in the North American auto industry. As part of the deal, assets of the plant will be transferred to Linamar. 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.”
ACH is a temporary company, managed and established by Ford Motor Company in October 2005 to ensure the flow of quality components and systems to Ford while ACH prepared its component operations for sale or idling. Today, the $4 billion company is supported by about 12,000 people including about 6,000 UAW employees leased from Ford.
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles in 200 markets across six continents. With more than 260,000 employees and more than 100 plants worldwide, the company’s core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo and Mazda. The company provides financial services through Ford Motor Credit Company.
For more information regarding Ford’s products, please visit www.fordvehicles.com
Source: Ford Motor Company