DEARBORN, MI — Ford Motor Company, Automotive Components Holdings LLC and Neapco Drivelines have signed definitive agreements for the sale of the ACH driveshaft business currently located in the ACH Monroe (MI) Plant.
The transfer of the business will begin next week and continue through the rest of the year.
This announcement follows the recent UAW ratification of the collective bargaining agreement negotiated with Neapco. Neapco is opening a 345,000 square foot state-of-the-art manufacturing facility in Van Buren Township, MI. Approximately 300 salaried and hourly employees from the Monroe Plan and associated technical and support staffs are being offered positions at the new facility.
Approximately 30 percent of the Monroe Plant’s 1,100 employees are associated with the driveshaft business. The majority of the salaried employees currently are leased to ACH from Visteon and the majority of the UAW hourly employees are leased from Ford.
"This is another sign of progress toward achievement of our ACH strategy and our pathway to profitability in North America in 2009," said Mark Fields, Ford executive vice president and president of The Americas.
Added Bill Connelly, CEO, Automotive Components Holdings: "This is our third sale and the first involving a U.S. business. It represents another important step toward our goal to improve the competitiveness of these operations under new ownership and improve Ford’s material costs."
Neapco Drivelines, LLC and its parent company, Neapco LLC, are headquartered in Pottstown, PA. Wanxiang Group, which is headquartered in Hangzhou , China , is the majority investor in Neapco, LLC. Neapco, LLC supplies drivelines, steering shafts and components for OEM and aftermarket automotive, truck, agricultural, off-highway and specialty vehicle applications from its facilities in Pennsylvania , Nebraska and Mexico .
"We are pleased to add the Ford driveshaft business and the expertise of the ACH people to our organization," said Robert Hawkey, Neapco president and CEO. "The Wanxiang Group and Neapco are growing globally through strategic acquisitions of innovative driveline p rod ucts and technologies. We are very appreciative of the support and encouragement we have received from the state, the local community and the United Auto Workers to maintain this business in Michigan ."
