August 11, 2008
Ford, ACH, Johnson Controls Terminate Sales Agreement
Ford Motor, Automotive Components Holdings and Johnson Controls, have terminated their memorandum of understanding for sale of the Automotive Components Holdings's interiors business and Saline, Michigan plant, to Johnson Controls.
The memorandum of understanding (MoU), which outlined the terms of the proposed acquisition, was signed in November 2007. The decision to terminate the MoU was reached by mutual consent.Automotive Components Holdings (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 is expected to restructure its interiors business to make the Saline plant competitive and attractive to potential buyers.
Bill Connelly, CEO of ACH, said: "We're disappointed, but due to a variety of factors, the timing was not right to complete this particular deal. Johnson Controls is, and will remain, a valued partner of Ford and ACH."