As per recent reports, Ford Motor Company(NYSE:F) reached an agreement to sell climate control business to joint venture that is owned by a French auto supplier and an ex member of the Detroit Pistons.
Financial terms were not divulged.
The agreement marks the last of the Michigan-based Dearborn’s Automotive Components Holdings LLC businesses to be sold. Ford made ACH in the year 2005 when it had withdrawn its 17 facilities from Visteon Corp.
This business is located at a township in Plymouth. It is being purchased by Detroit Thermal System LLC, which is a joint venture between V. Johnson Enterprises and Valeo. V. Johnson Enterprises is owned by Vincent Johnson, who is a Detroit entrepreneur and also a former Detroit Pistons player.
Although the agreement is set, it remains dependent on the approval of local and state financial incentives. The joint venture will start moving the assets and operations of the business to a new manufacturing facility in Romulus in mid-2013, as per Ford.
The business will generate climate control systems and parts for the automotive industry, which includes current supply agreements with the Ford Motor Co that was previously owned by ACH. It is eventually expected to employ about 500 people.
Production of climate control systems for Ford automobiles in North America is predicted to start in the third quarter of the year 2013 and present ACH workers at the Sheldon Road plant can apply for jobs at the new DTS plant that wants a varied employees offering chances for military veterans and minorities.
Johnson, the chief executive officer of Detroit Thermal Systems, said that the company is proud to declare the creation of Detroit Thermal Systems. The team is devoted to manufacturing top-notch climate control systems and to creating opportunities for employees for capable workforce in the Detroit region.