Ford reaches tentative deal to sell glass operations
DETROIT, April 18 (Reuters) - Ford Motor Co.(F.N) said on Wednesday it reached a tentative deal to sell the glass-making operations it took back from former subsidiary Visteon Corp. VC.N
Ford said it agreed to sell the glass-making unit, which employs about 1,600 workers, to Tulsa, Oklahoma-based Glass Products, a company formed by investor Robert Price.
Ford did not disclose the value of the sale, which comes as part of an effort to shed its remaining component manufacturing operations and slash costs.
Ford created a temporary holding company known as Automotive Components Holdings for the plants that it took back from Visteon as part of a bailout package for the parts supplier that was completed in 2005.
The struggling automaker is closing 14 North American plants and cutting 37,000 factory jobs and 14,000 white-collar staff in a bid to return to profitability by 2009.
With the memorandum of understanding to sell its ACH Glass Operations unit, Ford said it had sold one ACH unit and signed tentative deals to sell four others.
"The successful approach Ford is taking with our components operations -- including selling or idling (former Visteon) facilities -- will help us achieve our commitment to reduce overall costs by $5 billion by the end of 2008," Mark Fields, Ford's president of the Americas, said in a statement.
Ford said closing the sale of the glass unit hinged on negotiating a "new and competitive" agreement with the United Auto Workers union and securing state and local government incentives.
Ford is still negotiating to unload other former Visteon operations, including units manufacturing climate control devices and fuel tanks.
Ford's ACH employs about 12,000 full-time workers at its 12 plants.
