Ford to sell parts business

Ford Motor Co. said Wednesday it has reached an agreement to sell a parts business and a plant in Mexico to Linamar Corp. The power transfer unit business and the plant are part of Automotive Components Holdings, a Ford-managed entity that contains parts divisions taken over by Ford in 2005 as part of a bailout of auto supplier Visteon Corp. Ford plans to sell or close all the facilities by the end of 2008.

Linamar, an auto supplier based in Guelph, Ontario, had sales of $2.3 billion in 2006. Linamar Chief Executive Linda Hasenfratz said the purchase adds leading power transfer technology to Linamar's product line.

Financial terms weren't disclosed. The sale is expected to be completed Sept. 1st. More at Detroit News