ROMULUS — V. Johnson Enterprises LLC announced that the company has formed a joint venture with Valeo called Detroit Thermal Systems (DTS). The new company was created to supply automakers with high quality climate control products and components, manufactured in the Detroit area by a diverse workforce. To initiate operations, DTS has acquired the climate control business of Automotive Components Holdings (ACH). Ford Motor Co. and ACH announced the signature of definitive agreements with DTS for the sale of the business Oct. 29. The closing of the sales transaction is contingent upon the approval of state and local incentives.
The current business is located within the ACH Sheldon Road plant in Plymouth Township. DTS will revitalize and transfer the manufacturing equipment and operations to a state-of-the-art manufacturing facility in the Detroit area.
“We are very proud to announce the creation of Detroit Thermal Systems. Our team is committed to manufacturing world-class climate control systems and to creating employment opportunities for the talented workforce in the Detroit area,” said Vincent Johnson, chairman and CEO of Detroit Thermal Systems. “The growth of our new organization will help to revitalize local communities by creating new job opportunities for minorities, military veterans and others hard hit during the economic crisis.”
With the acquisition of the business, DTS will begin supporting current product supply commitments to Ford previously held by ACH. DTS will manufacture heating, ventilation and air conditioning (HVAC) units, initially for popular North American Ford vehicles, with future plans to develop offerings for new customers. The deal also gives DTS access to Valeo’s leading edge technology in HVAC modules, A/C systems and Powertrain Cooling Systems.
ACH’s assets and operations will transition to the new facility over the next 24 months, and ramp up of production is expected to begin during the third quarter of 2013. Current ACH employees at the Sheldon Road plant will be offered opportunities to apply for employment at DTS. The company is committed to promoting a diverse workforce by providing job opportunities for minorities and military veterans. DTS will apply to be certified as a Minority Business Enterprise.