DEARBORN, Mich., Oct. 29, 2012 /PRNewswire/ --
- Ford Motor Company and Automotive Components Holdings, LLC (ACH) today announced the sale of ACH's climate control business to Detroit Thermal Systems, LLC (DTS)
- This sale involves the last remaining automotive components operation and is the 10th sale of an ACH operation or plant
- This sale marks the culmination of the ACH strategy and the successful transition of ACH-managed operations to key strategic automotive suppliers
Ford Motor Company (NYSE: F) and Automotive Components Holdings, LLC (ACH) today announced the sale of the last remaining ACH operation – the climate control business currently located at the ACH Sheldon Road Plant in Plymouth Township, Mich. Ford and ACH have signed definitive agreements for the sale of the climate control business to Detroit Thermal Systems, LLC (DTS), a joint venture between Valeo and V. Johnson Enterprises, LLC. V. Johnson Enterprises is owned by Vincent Johnson, a Detroit entrepreneur and former Detroit Pistons basketball star.
This announcement marks the fulfillment of the ACH strategy and the 10th ACH sale of an operation or plant. ACH was started in October 2005 with 17 automotive components plants.
The initial closing of the sales transaction has taken place, contingent upon the approval of state and local incentives. Asset and operation transfers from the Sheldon Road Plant to a new DTS manufacturing facility in Romulus, Mich., will start in mid-2013 and conclude by the end of 2014.
"Few companies take the longer-term, comprehensive approach we took with the restructuring of ACH," said Mark Fields, Ford president of The Americas. "From the start, our eye was on what was required to transform these operations into businesses that would attract the world's best suppliers needed to move Ford's business forward – and at the same time, preserve as many jobs as possible. We are proud of what we accomplished."
The sale also expands Ford's business with minority-owned suppliers. V. Johnson Enterprises holds a controlling interest in DTS, while Valeo has the balance of the ownership in the new company. DTS intends to apply for certification as a minority business enterprise through the Michigan Minority Business Development Council.
"With each of these ACH sales, we worked with buyers to ensure alignment on the evolution of our business relationship over time," said Tony Brown, group vice president, Ford Global Purchasing. "We see these business relationships as integral to our Aligned Business Framework."
"Detroit Thermal Systems will provide Ford with an experienced, high-quality climate control supplier and contribute significantly to the renaissance of manufacturing in the Detroit region," said Vincent Johnson, chairman and chief executive officer of both V. Johnson Enterprises and DTS. "The combined capabilities of two world-class suppliers will provide customers with a capable, long-term partner, committed to support their needs today and for the future."
"This acquisition is a strategic breakthrough for Valeo that will not only strengthen our ties with Ford Motor Company in North America and the rest of the world, but also enhance our presence across North America," said Jacques Aschenbroich, Valeo chief executive officer. "Valeo, in addition, will be a member of Ford's Aligned Business Framework supplier program.
"This new joint venture will enable Valeo to broaden its offering of innovative thermal system products and support its customers in meeting their CO2 emissions reduction challenges," he added.
About Ford Motor Company
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 168,000 employees and about 65 plants worldwide, the company's automotive brands include Ford and Lincoln. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford and its products worldwide, please visit http://corporate.ford.com.
SOURCE Ford Motor Company