Faurecia, a French manufacturer of various component and structures for automotive interiors, plans to lease a Michigan plant from Ford Motor Co. and will use it to operate a joint venture with Rush Group Ltd. The plant in Saline, MI, is operated by Automotive Components Holdings, a subsidiary it established in 2005 to manage several former Visteon Corp. operations.
Rush Group will hold 55% of the new venture, and Faurecia will hold 45%. Other financial terms of the transaction were not released.
Faurecia, majority-owned by Peugeot Citroen, stated it will become North America’s largest supplier of auto interior systems with sales close to $1 billion annually, once it closes the transaction on June 1.
The Saline plant is an injection molding operation producing cockpit modules, instrument panels, door panels, and center consoles for 12 different Ford vehicle programs.
The joint venture will be known as Detroit Manufacturing Systems (DMS.) Faurecia plans to reduce the size of the operation in Saline and move some processes and workers to a new plant in Detroit (also operated in a joint venture with Rush Group.)
The Saline plant will focus on injection molding, skin manufacturing, and foaming operations. The Detroit plant will offer injection molding, assembly, and sequencing of interior trim components.
“We see this acquisition and joint venture providing tremendous opportunities for Faurecia, Ford, employees, local communities, and other key stakeholders,” stated Faurecia North America president Mike Heneka. “As we transform the Saline business and help launch a new plant in Detroit, we will foster a collaborative working environment, strengthen our relationship with Ford and invest in these communities.”