Business & Tech

Union, City Closely Follow Reports of ACH Sale

The United Auto Workers had hoped the plant would become a Ford plant again.

Workers and city officials are watching developments at the Plant in Saline.

The Associated Press reported that Ford Motor Co. has a memorandum of understanding to sell the Saline plant, which employs 2,300 people and produces interiors for several Ford vehicles, to French components maker, Faurecia SA.

Reached Wednesday, Ford spokeswoman Della DiPietro confirmed a memorandum of understanding was reached, but declined to identify the other party.

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At more than 1 million square feet, the Saline facility is one of the largest interior parts plants in the region. It has been humming of late and now features production that was brought over from the closed ACH plant in Utica. Some departments are running three shifts.

President Mark Caruso said the union is in a wait-and-see mode.

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“We won’t know anything until they’ve truly sold the place. Then we’re going to sit down and negotiate with the new owners and start the process,” said Caruso. “Our main goal, if it is sold, is to do what we can to provide for the future of our members and protect those jobs.”

In some ways, the news is disappointing to the union. In a recent newsletter to membership, Caruso said it was the union’s goal to see the facility become a Ford plant once again.

“The heartache for us is that we’ve made a lot of concessions to help save the company. We have some members at ACH who’ve been making the second tier wage for over five years. At the same time, you see the salary of CEO Alan Mulally (his compensation was estimated at $26.5 million in 2010). And then they sell of the plant? It’s difficult for workers to accept,” Caruso said.

The also has keen interest in the plant. City Finance Director Lee Bourgoin calculated the plant pays about 11 percent of the city’s tax revenue—about the amount of money the city spends on its . That share of the city’s tax revenue is up from 8.5 percent as residential home values dipped.

Mayor Gretchen Driskell said she was optimistic about the potential deal.

“The company that is reportedly purchasing the plant is well-recognized globally and has a significant presence in Michigan,” Driskell said. “Ford has invested heavily in the plant. It has been running three shifts and the employment is as high as it has been in quite awhile. It’s an effective facility and vital to Ford’s production. I look forward to continuing what has been a good partnership between the city, the plant and Ford.”

Ford has invested more than $120 million at the Saline ACH plant since it took over when Visteon collapsed. That includes $32 million invested in 2010 for interior skin and other manufacturing.

The plan has injection moding and cast and urethane skin production and assembly, and it manufactures center consoles, door panels, instrument panels and other interior trim for vehicles such as the Focus and Taurus.

According to the Faurecia SA website, the had sales of $11.5 billion in the first half of 2011. 

Ford had memorandum of understanding to sell the Saline plant to Johnson Controls before that deal collapsed. 


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