DETROIT -- Johnson Controls Inc. today agreed to purchase Automotive Components Holdings automotive interiors business and its Saline, Mich., plant from Ford Motor Co.
The deal is contingent upon a new labor agreement between Johnson Controls and the UAW.
Terms were not disclosed.
We continue to make good progress on our plan to sell or close most of our ACH facilities by year end 2008, Mark Fields, Fords president of the Americas, said in a statement. This is an important element of Ford North Americas return to profitability.
So far Ford has sold two Automotive Components Holdings operations in Mexico and has six agreements for the sale of seven plants and the business unit of an additional plant.
The 1.6-million-square-foot Saline plant produces instrument panels, cockpits, door panels, door trim and consoles for Ford vehicles.
Through this agreement, Johnson Controls would be able to provide further support to Ford, Jeff Williams, general manager of Johnson Controls automotive operations in North America, said in the statement.
This acquisition would also complement Johnson Controls global growth plans for our interiors business by expanding our global interiors manufacturing capacity.
Automotive Components Holdings is the business unit created by Ford to handle plants the automaker took back from supplier Visteon Corp. in 2005. Visteon was Fords parts unit before spinning off in 2000.
Johnson Controls, of Milwaukee, Wis., ranks No. 5 on the Automotive News list of the top 100 global suppliers with original-equipment automotive parts sales of $19.50 billion in fiscal 2006.