Ford, Johnson Controls end sale deal on plant

DETROIT, Aug 8 (Reuters) - Ford Motor Co (F.N) has ended a plan to sell an interiors plant to parts maker Johnson Controls Inc (JCI.N) because the downturn in the U.S. auto sector has made pricing the deal hard, the automaker said on Friday.

The deal to sell the plant in Saline, Michigan, was ended by mutual consent, Ford said. Ford had reacquired the plant from former parts unit Visteon Corp VC.N in 2005 and it is being held in Ford's Automotive Components Holdings business.

Ford and Johnson Controls had reached an understanding on the plant in November, but the slump in the auto sector driven by higher gasoline prices, weakness in the U.S. housing market and slumping sales of trucks and SUVs made talks increasingly hard, Ford said.

Ford said operations at the plant will continue beyond 2008 and it will continue restructuring the business to make it more competitive. The plant produces instrument panels, cockpits, door trim, and consoles for a number of Ford vehicles. (Reporting by David Bailey, editing by Gerald E. McCormick)