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Ford and Johnson Controls cancel plant-sale deal
Ford Motor Co. and auto-parts supplier Johnson Controls Inc. canceled an agreement reached in November for Johnson Controls to acquire a Michigan factory, citing record gasoline prices and sliding auto sales, Bloomberg News reported Friday.
The companies said in November that Johnson Controls would acquire an interior-components plant in Saline. Since then, "general business conditions" prompted Ford and the partsmaker to terminate the accord, Ford spokeswoman Della DiPietro said in an interview with Bloomberg today.
Ford said it's "considering all options" for the plant. The plant will remain open beyond this year, Ford said. Debra Lacey, a spokeswoman for Johnson Controls in Plymouth, didn't immediately return a telephone message from Bloomberg seeking comment.
The Saline instrument panel factory is one of 17 plants Ford took back from former subsidiary Visteon Corp. in 2005. The automaker planned to close or sell the bulk of those operations. Ford originally wanted to resolve the fate of the former Visteon plants by this year.
The companies said in November that Johnson Controls would acquire an interior-components plant in Saline. Since then, "general business conditions" prompted Ford and the partsmaker to terminate the accord, Ford spokeswoman Della DiPietro said in an interview with Bloomberg today.
Ford said it's "considering all options" for the plant. The plant will remain open beyond this year, Ford said. Debra Lacey, a spokeswoman for Johnson Controls in Plymouth, didn't immediately return a telephone message from Bloomberg seeking comment.
The Saline instrument panel factory is one of 17 plants Ford took back from former subsidiary Visteon Corp. in 2005. The automaker planned to close or sell the bulk of those operations. Ford originally wanted to resolve the fate of the former Visteon plants by this year.