| Ford Motor Company and Meridian Automotive | | | | cost-effectiveness of our operations during the past |
| Systems have announced Monday in a company | | | | year and a half." |
| press release this week a Memorandum of | | | | Automotive Components Holdings is a temporary |
| Understanding (MOU), outlining a framework for the | | | | company managed by Ford, established in October |
| sale of Automotive Components Holdings' lighting | | | | 2005 with former Visteon component operations. |
| business and its Sandusky, Ohio plant. ACH has so far | | | | ACH's mission is to ensure the flow of quality |
| now sold one plant and signed MOUs related to eight | | | | components and systems while preparing the ACH |
| additional plants during the past six months. | | | | automotive component operations for sale or idling. |
| The primary product produced at the ACH Sandusky | | | | The $4 billion company and its 12 plants are currently |
| Plant is automotive lighting, including front, rear and | | | | supported by about 12,000 full-time employees, |
| signal lights. These products are found on several | | | | mostly leased from Visteon or Ford. |
| Ford vehicles from the Focus to the Expedition, and | | | | Richard Newsted, Meridian's president and CEO said, |
| about 60 percent of Ford's North American vehicle | | | | "Acquiring the Sandusky, Ohio facility is a logical |
| production. | | | | extension of our engineering and manufacturing |
| The announcement, says Mark Fields, Ford's president | | | | expertise in lighting." |
| of The Americas, represents more progress with the | | | | "We are excited about the opportunity to improve |
| company's Way Forward plan, "The successful | | | | the long-term competitive position of this operation |
| approach Ford is taking with our component | | | | and expand our strengths and capabilities in lighting |
| operations - including selling or idling our ACH facilities - | | | | technology." |
| will help us achieve our commitment to reduce overall | | | | The sale is contingent upon reaching a new and |
| operating costs by $5 billion by the end of 2008." | | | | competitive agreement with the United Auto |
| At the end of the first quarter the ACH fuel rail | | | | Workers. |
| business was sold along with its El Jarudo subsidiary. | | | | Ford Motor Company, a global automotive industry |
| Other ACH businesses currently in negotiations for | | | | leader based in Dearborn, Mich., manufactures or |
| final agreement and sale include glass, fascias and fuel | | | | distributes automobiles in 200 markets across six |
| tanks, climate control systems, propshafts, and | | | | continents. With about 260,000 employees and about |
| power transfer units (PTU). | | | | 100 plants worldwide, the company's core and |
| "The response from the marketplace has been | | | | affiliated automotive brands include Ford, Jaguar, Land |
| better than expected," said Al Ver, ACH CEO and | | | | Rover, Lincoln, Mercury, Volvo and Mazda (maker of |
| COO and Ford Motor Company vice president. "We | | | | top of the line Mazda spark plug wire). The company |
| believe that is due, in large measure, to the significant | | | | provides financial services through Ford Motor Credit |
| improvement in the quality, on-time delivery and | | | | Company. |