Sales Proposal
Ford Motor Co
30 April 2007
Contact: Media, Investment Community Shareholder Inquiries
Della DiPietro Larry Heck (Equity) 1.800.555.5259 or
1.313.755.2432 1.313.594.0613 1.313.845.8540
1.313.720.8095 lheck@ford.com stockinf@ford.com
ddipietr@ach-llc.com;
Rob Moeller (Fixed Income)
1.313.621.0881
rmoeller@ford.com
FORD ANNOUNCES SALES PROPOSAL FOR AUTOMOTIVE COMPONENTS HOLDINGS CONVERCA
OPERATION
• Ford Motor Company and Linamar Corporation have reached a non-binding
proposal outlining the framework for the sale of the Automotive Components
Holdings (ACH) Power Transfer Unit business at the Converca I Plant in
Mexico.
• This is the sixth agreement regarding an ACH business as ACH moves forward
in determining the future for each of its operations. One business has been
sold and other sales are pending.
DEARBORN, Mich., Apr. 30, 2007 - Ford Motor Company and Linamar Corporation
today announced a non-binding proposal outlining the framework for the sale of
the Automotive Components Holdings' Power Transfer Unit (PTU) business at the
Converca I Plant in Nuevo Laredo, Mexico.
The ACH Converca I plant is a leading manufacturer of PTUs in the North American
auto industry. Part of the transmission, a PTU transfers power between axles in
all-wheel-drive vehicles.
This proposal marks the sixth such agreement reached in the last five months.
ACH sold its fuel rail business and its El Jarudo subsidiary in early April.
Sales negotiations are continuing regarding the climate control business and the
Sheldon Road Plant near Plymouth, Mich.; the fascia and fuel tank businesses and
the Milan (Mich.) Plant; the ACH propshaft business, which currently is one of
the products produced at a Monroe, Mich., facility; and the glass business and
its plants in Nashville, Tenn., and Tulsa, Okla., and its Vidriocar subsidiary
in Juarez, Mexico.
'This announcement is another solid sign of progress for our North American Way
Forward plan,' said Mark Fields, Ford's president of The Americas. 'The
successful approach Ford is taking with our component operations - including
selling or idling our ACH facilities - will help us achieve our commitment to
reduce overall operating costs by $5 billion by the end of 2008.'
'We aggressively are pursuing our strategy and we are very pleased with the
response from the marketplace,' said Al Ver, ACH CEO and COO and Ford Motor
Company vice president. 'Recent improvement in the quality, delivery and cost-
effectiveness of our operations has surprised some buyers.'
The Converca I Plant also produces propshafts, stabilizer bars and steering
components. The production of stabilizer bars is scheduled to end late this year
and ACH is considering options for the steering component and propshaft
production.
Linamar Corporation is a diversified global manufacturing company with sales of
$2.3 billion and about 11,000 employees and 36 manufacturing locations
worldwide.
'The acquisition of ACH's PTU manufacturing and product engineering
capabilities, with leading-edge PTU technology, would significantly enhance the
depth of our Transmission/Driveline Group,' said Linda Hasenfratz, Linamar's
CEO.
ACH is a temporary company established and managed by Ford to ensure the flow of
quality components and systems while preparing the automotive component
operations for sale or idling. Today, the $4 billion company and its 12 plants
are supported by about 12,000 full-time employees, mostly leased from Visteon or
Ford.
Ford Motor Company, a global automotive industry leader based in Dearborn,
Mich., manufactures or distributes automobiles in 200 markets across six
continents. With more than 280,000 employees and more than 100 plants worldwide,
the company's core and affiliated automotive brands include Ford, Jaguar, Land
Rover, Lincoln, Mercury, Volvo, Aston Martin and Mazda. The company provides
financial services through Ford Motor Credit Company. For more information
regarding Ford's products, please visit http://www.fordvehicles.com.
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This information is provided by RNS
The company news service from the London Stock Exchange