Universal Integration Or Risk

In universal and ford signed memo, have such a words: "memorandum of advice, the new business operations will retain only one 5 of the current factory production capacity, and are looking for can accommodate shaft manufacturing business in new places."Some industry analysts judge, universal after the acquisition of the company, is the possibility of a significant layoffs, and likely to transfer all or part of the business to China, the purpose is to cut costs, improve the competitive ability of the company. At the end of last year, both sides of the negotiations are still secret stage, after they learned this information to the media, who interviewed Mr Lu.He did not reveal which piece of the business are likely to buy, but made it clear: ford parts business asset quality is good, but the high labor costs in the United States, the business does not necessarily make a profit.The universal acquisition of the implication, if successful, could consider to move our business to China production. ACH CEO and vice President ford Buddha (AlVer), also showed the two sides have agree on solving the problem of people and places.He said: "we are using a series of groundbreaking method, even if necessary the company moved to a new place, to transfer the business and human resources to the new owner."In trade union organizations is very perfect and high labor costs in the United States, layoffs or industry transfer, is a very sensitive topic.ACH company has 1200 employees at present, mostly by visteon turn to hire employees and turn from the united auto workers union (UAW) is paid by the hour. As a result, the deal can succeed, but also on ford sign a new agreement with the united auto workers union, as well as the local state and local policy support.But also have personage analysis, in dealing with international mergers and acquisitions, universal has accumulated rich experience, should have the ability to properly deal with this problem.Universal north American subsidiary, mostly through acquisitions, previously, universal in the acquisition of other businesses, have been to all of its products to China's production of precedent.

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