Ford plant sale deal falls apart

DETROIT, Aug. 9 (UPI) -- Sluggish sales and tight credit killed a planned sale of a Michigan plastic trim plant to a Ford supplier, industry experts say.

The deal with Johnson Controls Inc. to purchase the Saline, Mich., plant means that Ford will continue to run the factory itself, along with two other former Visteon Corp. plants that it took back in 2005 as part of a bail-out of its former parts subsidiary, reported The Detroit News Saturday.

Industry experts say it is one more sign of how weak the U.S. automobile industry is that suppliers are so stretched for cash in the face of rising material costs and declining vehicle sales.

"Everything has just collapsed much faster than anybody thought," said Jim Gillette, director of supplier analysis at Northville-based CSM Worldwide. "It's hard to do any deal right now," Gillette said. "The credit markets are in shambles."

But Ford says ensuring a steady flow of auto parts is more important than selling plants to suppliers.

"We look forward to being able to resolve the issues with these plants and sell them," said Ford spokesman Bill Collins. "We've got sufficient funding."