US car manufacturer Ford Motor Co., after a year of trying, has decided not to sell a stake in its Glass Division, and instead will try to breathe new life into the unit. In April 1995, Ford announced…
US car manufacturer Ford Motor Co., after a year of trying, has decided not to sell a stake in its Glass Division, and instead will try to breathe new life into the unit. In April 1995, Ford announced that it planned to sell an undisclosed stake in the division, which has US plants in Dearborn-Michigan, Nashville-Tennessee, and Tulsa-Oklahoma; as a well as a plant in Juarez, Mexico. The division had 1994 sales of US$ 491 million and employs about 4,100 people.”It has not been a great business for us,” stated John Devine, Ford group vice president and chief financial officer. “We“re undertaking some very strong measures to make it better.” Ford is eager to unload the glass operation because of the large investment required to build modern production facilities. Suppliers also need a critical mass of sales volume to maintain their research and development budgets. Although it was Ford“s decision to take the division off the market, Devine said that the US Union of Automotive Workers (UAW) was also involved in the decision. UAW vice president Ernie Lofton criticised Ford when the company said it was seeking a buyer for the division. The union also blocked earlier bids by Chrysler Corp. to sell its glass operation. By June 1995, Ford had a list of potential investors in the glass division, which supplies automotive glass to Ford plants in North America, produces automotive glass for the aftermarket and produces architectural glass. Indeed, formal due diligence proceedings – when potential investors scrutinise business plans, facilities and financial statements – neared completion in the autumn. All parties signed confidentiality agreements, and possible buyers were not disclosed. But possible investors included Libbey-Owens-Ford Co., Guardian Industries Corp., PPG Inc., Saint-Gobain and AP Technoglass.