From AFX News Limited

DEARBORN, MI -- Ford Motor Co. and Tulsa, OK-based Glass Products on Wednesday announced the signing of a memorandum of understanding for the sale of Ford's Automotive Components Holdings LLC Glass Operations.

Financial terms were not disclosed.

The agreement covers Glass Operations' plants in Nashville, TN, and Tulsa, OK, and its subsidiary Vidriocar in Mexico.

Glass Operations supplies architectural glass, original equipment and aftermarket glass for Ford cars and trucks, and aftermarket glass for other vehicle models. The company, which employs about 1,600 full-time workers, supplied original equipment glass for about 2.7 million vehicles last year.

Ford officials said the sale will help the company reach its goal of reducing overall operating costs by $5 billion by the end of 2008.

The business was part of Visteon Corp., Ford's parts wing that was spun off in 2000. But, in October 2005, Ford took back 17 plants and six other facilities and formed Automotive Components with the intent of closing or selling them.

With Wednesday's agreement, Ford said Automotive Components has sold one business and has signed memorandums of understanding outlining the sale of four others.

The final agreement for the sale of the glass business is contingent upon a new agreement with the United Auto Workers union, as well as state and local government incentives, Ford said.

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