MOU Signed

18 Apr 2007 15:52

Ford Motor Co18 April 2007 Contact: Media: Investment Community Shareholder Inquiries:Della DiPietro Larry Heck (Equity) 1.800.555.5259 or 1.313.755.2432 1.313.594.0613 1.313.845.85401.313.720.8095 lheck@ford.com stockinf@ford.comddipietr@ach-llc.com Rob Moeller (Fixed Income) 1.313.621.0881 rmoeller@ford.com FORD AND GLASS PRODUCTS REACH MOU FOR AUTOMOTIVE COMPONENTS HOLDINGS GLASS BUSINESS • Ford Motor Company and Tulsa-based Glass Products have reached a Memorandum of Understanding (MOU) outlining a framework for the sale of the Automotive Components Holdings' Glass Operations. • This MOU brings to five the number of ACH businesses sold or currently involved in negotiations toward sales agreements. • Automotive Components Holdings was created in October 2005 to ensure the flow of critical components to Ford and to significantly reduce Ford's material costs over time. Operational costs as well as quality and delivery measures have significantly improved since ACH's formation. DEARBORN, Mich., Apr. 18, 2007 - Ford Motor Company and Glass Products todayannounced the signing of a Memorandum of Understanding (MOU), the first steptoward the sale of the Automotive Components Holdings (ACH) Glass Operations andits plants in Nashville, Tenn., and Tulsa, Okla., and its subsidiary Vidriocarin Juarez, Mexico. ACH Glass Operations supply architectural glass, original equipment andaftermarket glass for Ford cars and trucks, and aftermarket glass for vehiclesof other makes. It supplied original equipment glass for about 2.7 millionvehicles last year. About 1,600 full-time employees work in the operations. "This MOU is another solid sign of progress for our North American Way Forwardplan," said Mark Fields, Ford's President of The Americas. "The successfulapproach Ford is taking with our component operations - including selling oridling our ACH facilities - will help us achieve our commitment to reduceoverall operating costs by $5 billion by the end of 2008." With this agreement, ACH has sold one business and has signed MOUs outlining theframework for the sale of four others. The ACH fuel rail business and its ElJarudo subsidiary were sold recently. Negotiations are continuing regarding theclimate control business and the Sheldon Road Plant near Plymouth, Mich.; thefascia and fuel tank businesses and the Milan (Mich.) Plant; and the ACHpropshaft business, which currently is one of the products produced at a Monroe,Mich., facility. "We are particularly pleased to announce a MOU for the sale of the GlassOperations," said Al Ver, ACH CEO and COO and Ford vice president. "Sale ofthese operations has been in various stages of discussion and negotiation formany years. We believe this agreement represents the best option for thecontinued success of these facilities in the years ahead." Glass Products was formed by Robert Price, a Tulsa-based private investor andexperienced business leader with a strong record of success in the natural gasindustry, logistics, and medical facility management. "I am excited by this new venture, especially with its potential of growth for abusiness that has been a hallmark of the Tulsa business community for manyyears," said Price, who serves as chairman of Glass Products. The final agreement is contingent upon a new and competitive agreement with theUAW, as well as state and local government incentives. ACH is a temporary company established and managed by Ford to ensure the flow ofquality components and systems while preparing the automotive componentoperations for sale or idling. Today, the $4 billion company and its 12 plantsare supported by 12,000 full-time employees, mostly leased from Visteon or Ford. Ford Motor Company, a global automotive industry leader based in Dearborn,Mich., manufactures or distributes automobiles in 200 markets across sixcontinents. With more than 280,000 employees and more than 100 plants worldwide,the company's core and affiliated automotive brands include Ford, Jaguar, LandRover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company providesfinancial services through Ford Motor Credit Company. For more informationregarding Fords products, please visit www.fordvehicles.com. Go to http://media.ford.com for news releases and high resolution photograhps. This information is provided by RNS The company news service from the London Stock Exchange