Chinese Supplier Interested in ACH Assets

A top Chinese auto supplier, Wanxiang Group, is in talks with Ford Motor Co. to purchase assets from the auto maker’s Automotive Components Holdings LLC, the Financial Times reports.

ACH is composed of 14 unwanted manufacturing plants and other facilities Ford acquired from former subsidiary Visteon Corp. last year.

Citing the Chinese firm’s founder and chairman, Lu Guanqiu, the report says the discussions were part of a strategy to expand the supplier’s worldwide presence.

“We have seen that the quality of (Ford’s) assets is alright, but because of high labor costs the business is not always profitable,” Lu told the newspaper.

Reportedly of particular interest to Wanxiang is Ford’s advanced design and production technology and its component-distribution processes.