Ford Announces Sale of Automotive Components Holdings' PTU Business
Ford Motor Co. and Linamar Corp. announced the signing of definitive agreements for the sale of the Automotive Components Holdings’ Power Transfer Unit (PTU) business and its Concerca I Plant in Neuvo Laredo, Mexico.
The ACH Converca I Plant is among the leading manufacturers of power transfer units in the North American auto industry. As part of the deal, assets of the plant will be transferred to Linamar. The plant also produces propshafts, stabilizer bars and steering gears. According to Ford’s press release, stabilizer bar production will end later this year and propshaft and steering gear production will continue at Converca.
“This sale is another demonstration of our commitment to achieve the material cost goals in our Way Forward strategy,” says Mark Fields, president of the Americas and Ford executive vice president. “This is critical as we work toward our goal of profitability in North America by 2009.”