Ford, Flex-N-Gate reach MOU for sale of Michigan plant

Ford Motor Company and Flex-N-Gate on December 18 announced a memorandum of understanding (MOU) that outlines the plans which have been established for Flex-N-Gate's purchase of Automotive Components Holdings' fascia and fuel tank operations at its Milan, Mich., plant.

The Milan plant produces automotive front and rear fascias and fuel tanks. The plant currently employs approximatley 700 people, including salaried employees leased from Visteon and United Auto Workers hourly employees leased from Ford. It is part of Automotive Components Holdings, a Ford-managed temporary company formed in October 2005.

Flex-N-Gate is a growing, international and privately held company with numerous manufacturing operations in several countries. Flex-N-Gate has a solid reputation in the plastics and metal forming industries and has content on virtually all major automotive nameplates.

"This MOU on another Automotive Components Holdings business represents continued momentum for our Way Forward Acceleration," said Mark Fields, president of The Americas and Ford executive vice president. "These sales enhance our ability to reduce material costs and obtain high-quality, competitively priced components in North America."

"ACH has had a flurry of activity as we end the year and I am pleased to announce our third MOU in one month," said Al Ver, CEO and COO, Automotive Components Holdings, and Ford vice president. "This MOU with Flex-N-Gate underscores our progress with the ACH strategy."

"This MOU is a statement of our intention to be a key part of Ford's initiatives. We enjoy a long and valued relationship with Ford. This agreement will build on our relentless efforts to expand our customer base and product/service offerings," said Shahid Khan, CEO, Flex-N-Gate. "There are many reasons why this deal makes sense. Milan is a plant with great technical and production capabilities; it will support our continued alignment with Ford. Milan also offers us an exciting opportunity to acquire fuel tank competencies and continue our growth throughout the industry."

The deal is contingent upon a new and competitive agreement with the UAW. Other issues to be addressed before conclusion of a final agreement include the alignment of property taxes with the current property value.

Automotive Components Holdings produces automotive and architectural glass, automotive interior, climate, chassis, and powertrain components and operates 10 plants in the United States and three in Mexico.

Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles in 200 markets across six continents. With about 300,000 employees and more than 100 plants worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo.