November 15, 2007 -- Johnson Controls Inc has agreed to buy an auto interiors plant from Ford Motor Co , one of several plants the car maker plans to sell or close by the end of 2008, the companies said on Thursday.

Johnson Controls, a diversified manufacturer that produces seats and auto interiors among other products, signed a memorandum of understanding outlining the planned purchase of the interiors plant from Ford in Saline, Michigan.

The plant, one of many Ford bought back from Visteon Corp in its bailout of the former parts unit in 2005, has about 1,350 employees overall, including 400 temporary workers.

The companies did not disclose expected timing for the sale or other details. The sale is contingent on Johnson Controls reaching a new agreement with the United Auto Workers union.

The hourly and salaried workers at the Saline plant are employed by Ford or by Visteon and leased to the facility, which is part of Ford's Automotive Components Holdings group. They may have the right to return to their companies.

The agreement includes some understanding about future Ford business from the plant, which produces instrument panels, fully arrayed cockpits, door panels and other components. Johnson Controls already is a significant supplier to Ford.

Ford set up the ACH group to prepare the former Visteon facilities for sale or closure. ACH has 11 plants left and Ford continues to make progress on selling or closing most of the facilities by the end of 2008, it said.

ACH now has six memorandums for the sale of seven additional plants and a business from an eighth plant, Ford said. Ford executives said on Thursday that at least part of one ACH plant would stay open beyond 2008. (Reporting by David Bailey, editing by Gerald E. McCormick and Andre Grenon)

Source: Reuters News