Ford Motor said on Monday that it plans to sell a climate-control unit to a joint venture comprised of Valeo of France and V. Johnson Enterprises, completing the car maker's plan to sell off a collection of auto parts manufacturing businesses.
The climate control unit, which was sold for an undisclosed price, was one of 17 facilities that Ford took over from Visteon, its struggling former car parts arm, in 2005. The idea was to ensure that the car maker would have access to crucial components even if Visteon failed.
Ford organized those businesses into Automotive Component Holdings, or ACH, with the aim of selling off the divisions over time. The remaining business was the climate control unit, which is based in Plymouth, Mich.
“Few companies take the longer-term, comprehensive approach we took with the restructuring of ACH,†Mark Fields, Ford's president of the Americas, said in a statement. “From the start, our eye was on what was required to tran sform these operations into businesses that would attract the world's best suppliers needed to move Ford's business forward â€" and at the same time, preserve as many jobs as possible. We are proud of what we accomplished.â€
The business will now be run by Detroit Thermal Systems, a partnership between Valeo and V. Johnson, a car parts maker owned by Vinnie Johnson, a former player for the Detroit Pistons basketball team. V. Johnson will own 51 percent of the new business, while Valeo will own the balance.
Detroit Thermal plans to transfer the climate control unit's assets and operations to Romulus, Mich. starting in the middle of next year and ending in 2014.
“This acquisition is a strategic breakthrough for Valeo that will not only enhance our presence across North America, but also strengthen our ties with the Ford Motor Company in North America and the rest of the world,†Jacques Aschenbroich, Valeo's chief executive, said in a statement.
