DEARBORN, Mich., Aug. 8 /PRNewswire-FirstCall/ -- Ford Motor Company , Automotive Components Holdings, LLC and Johnson Controls, Inc. today announced termination of their Memorandum of Understanding 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.
Business conditions have deteriorated dramatically over the past several months. 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.
Automotive Components Holdings was established by Ford Motor Company in October 2005 to ensure the flow of quality components and systems to Ford while ACH facilities, formerly owned by Visteon, were prepared for sale or other disposition. ACH has completed the sale of five plants and one business unit from a sixth.
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 229,000 employees and about 90 plants worldwide, the company's core and affiliated automotive brands include Ford, Lincoln, Mercury, Volvo and Mazda. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford's products, please visit our website at www.ford.com .