Ford Motor Company and Meridian Automotive Systems on June 12 announced a memorandum of understanding (MOU), outlining a framework for the sale of Automotive Components Holdings' lighting business and its
The primary product produced at the ACH Sandusky Plant is automotive lighting, including front, rear and signal lights. These products are found on a number of Ford vehicles from the Focus to the Expedition, and about 60 percent of Ford’s North American vehicle production.
“This announcement represents more progress with our Way Forward plan,” said Mark Fields, Ford’s president of The Americas. “The successful approach Ford is taking with our component operations – including selling or idling our ACH facilities – will help us achieve our commitment to reduce overall operating costs by $5 billion by the end of 2008.”
Other ACH businesses in negotiations for final agreement and sale include glass, fascias and fuel tanks, climate control systems, propshafts, and power transfer units (PTU). The ACH fuel rail business and its El Jarudo subsidiary were sold at the end of the first quarter.
“The response from the marketplace has been better than expected,” said Al Ver, ACH chief executive officer and chief operations officer and Ford Motor Company vice president. “We believe that is due, in large measure, to the significant improvement in the quality, on-time delivery and cost-effectiveness of our operations during the past year and a half.”
Automotive Components Holdings is a temporary company managed by Ford, which was established in October 2005 with former Visteon component operations. ACH’s mission is to ensure the flow of quality components and systems while preparing the ACH automotive component operations for sale or idling. Today, the $4 billion company and its 12 plants are supported by about 12,000 full-time employees, mostly leased from Visteon or Ford.
“Acquiring the
The sale is contingent upon reaching a new and competitive agreement with the United Auto Workers.
