Automotive Components Holdings and Johnson Controls Terminate Plant Deal - aftermarketNews

Automotive Components Holdings and Johnson Controls Terminate Plant Deal

Ford Motor Co., Automotive Components Holdings (ACH) and Johnson Controls have terminated their Memorandum of Understanding (MOU) for sale of the ACH interiors business and ACH's Saline, Mich., plant to Johnson Controls. According to all three companies, deteriorating business conditions, including higher gasoline prices, weakness in the housing industry and a slumping market for trucks and SUVs made negotiations increasingly difficult. These factors, coupled with circumstances unique to this deal, all contributed to the end of negotiations toward a final agreement.

DEARBORN, Mich. — Ford Motor Co., Automotive Components Holdings (ACH) and Johnson Controls have terminated their Memorandum of Understanding (MOU) for sale of the ACH interiors business and ACH’s Saline, Mich., plant to Johnson Controls.

The MOU, which outlined the terms of the proposed acquisition, was signed in November 2007. The companies have been in talks since that time. The decision to terminate the MOU was reached by mutual consent.

According to all three companies, deteriorating business conditions, including higher gasoline prices, weakness in the housing industry and a slumping market for trucks and SUVs made negotiations increasingly difficult. These factors, coupled with circumstances unique to this deal, all contributed to the end of negotiations toward a final agreement.

"We’re disappointed, but due to a variety of factors, the timing was not right to complete this particular deal," said Bill Connelly, CEO, Automotive Components Holdings. "Johnson Controls is, and will remain, a valued partner of Ford and ACH."

ACH is considering all options and no decisions have been made about the future of the Saline Plant, except that ongoing operations will continue beyond 2008. ACH will continue to restructure its interiors business to make the Saline Plant more competitive and attractive to potential buyers.

The ACH Saline Plant covers 1.6 million square feet on 189 acres. The plant won international supplier acclaim for two injection molding processes and other plastics innovations in 2005. Its product portfolio includes instrument panels, cockpits, door trim and consoles for a variety of Ford vehicles.

You May Also Like

Dana Participating in Easter Jeep Safari

The event will take place in Moab, Utah, March 23-31.

Dana to Participate in Easter Jeep Safari 2024

Dana Incorporated will participate in Easter Jeep Safari 2024, held March 23-31 in Moab, Utah. Dana products will be on site and available for demonstrations.

“At Dana, we are committed to rigorously testing and validating our products in the most challenging conditions to guarantee superior quality, durability, and performance,” said Bill Nunnery, senior director, sales and marketing, global aftermarket for Dana. “Easter Jeep Safari features rugged trails that offer us an ideal terrain for product trials. The event also gives us the opportunity to engage with Jeep enthusiasts and understand how we can enhance their off-road experiences through vehicle customizations.”

ZF Aftermarket Releases 80 New Parts

The latest additions expand coverage to more than 5 million vehicles in operation.

ZF Aftermarket Releases 80 New Parts
Schaeffler Highlights ESG Progress in 2023 Sustainability Report

Schaeffler is currently focusing on seven key ESG goals in the implementation of its sustainability strategy.

Schaeffler 2023 Sustainability Report
CMA, DoubleCoin to Showcase Long-Haul Steer Tires at MATS

Company reps will be on-site to answer questions, schedule meetings and coordinate a raffle of outdoor sporting equipment in booth #11140.

tire-distribution-outlook-tire-rack
GB Reman to Host Jackpot Giveaway Winner at Long Beach Grand Prix

Jon Hetzel, owner of Hesski ServiCenter in Levittown, Pennsylvania, will join GB Reman in the company’s hometown next month

GB Reman to Host Jackpot Giveaway Winner at Grand Prix of Long Beach

Other Posts

Bendix Surpasses Worker Safety Goals

Bendix says its Total Case Improvement Rate improved since 2022.

Bendix Announces Worker Safety Statistics
New Rislone ‘DEF Crystal Clean’ Clears P20EE Codes

The product scrubs away crystal contaminants from the selective catalytic reduction systems of diesel cars, trucks and SUVs.

New Rislone DEF Crystal Clean Diesel DEF & SCR Emissions System Cleaner Announced
SMP Announces New Oil Filter Housing Kits

The kits feature multiple design improvements to prevent leaks, according to SMP.

SMP Announces New Oil Filter Housing Kits
NTK Technologies Announces Merger into Niterra North America

The merger will take effect on April 1, and NTK Technologies will begin operating under Niterra North America Inc.

Niterra Merger