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GlobeSt.com UPDATE: 13 Visteon Plants Going to Market

DETROIT-Ford and spin-off Visteon reach a deal to sell 13 unprofitable auto parts plants in six states. The United Auto Workers also signs off on the disposition plan.

By Dan Heaton | Updated on May 25, 2005

DETROIT-Ford Motor Co. will create a separate holding company to take control of 15 plants owned by its largest supplier, with a goal of selling 13 of those plants. Ford and Visteon announced details of the plan, first heard about in rumors late last week , early Wednesday morning.

On Tuesday evening, the United Auto Workers union approved the plan. All of the plants have unionized workforces. Those 13 include sevenplants in Michigan, two in Tennessee and one plant each in Ohio, Indiana, Missouri and Oklahoma. Nearly 18,000 union workers are employed at those plants. In addition, Ford said it will take over temporary management of five additional Visteon plants in the US and four in Mexico.

The plan calls for closing one UAW-represented Visteon plant, in Macomb County’s Chesterfield Township, in mid-2006. That plant had been targeted for closing in 2007. The remaining two plants, a chassis maker in Sterling Heights and the Rawsonville parts plant near Ypsilanti, both in metro Detroit, would be absorbed back into Ford, which spun off Visteon in 2000.

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