From AFX News Limited

DEARBORN, MI -- Ford Motor Co. said earlier this week it has reached a non-binding proposal with Linamar Corp., a diversified manufacturing company, outlining the potential sale of its Mexico-based power transfer unit business. Financial terms were not disclosed.

The Converca I Plant in Nuevo Laredo, Mexico produces power transfer units, a transmission component for all-wheel-drive vehicles, for the North American auto industry.

The business is part of Ford's Automotive Components Holdings group, a collection of plants that Ford wants to sell or close by 2008.

The plants are auto-component operations that Ford reacquired in 2005 from Visteon Corp. as part of a wider bailout agreement for the supplier. Ford spun off Visteon in 2000.

The Converca I Plant also produces propshafts, stabilizer bars and steering components. Stabilizer bar production is slated to end late this year, and the company said it is considering options for steering component and propshaft production.

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