Ford Motor Co (F.N) will sell its Saline, Michigan-based automotive interior trim business to French auto supplier Faurecia. The deal involves three parties, Ford, Faurecia and Rush Group Ltd., the Detroit Free Press reported Thursday.
The trim business is the last remaining Automotive Components Holdings operation at Ford’s plant in Saline, Mich.
After the deal, Ford’s ACH unit will operate just two businesses: a lighting plant in Sandusky, Ohio, and a hydraulic steering systems plant in Plymouth, Michigan.
Faurecia will acquire the Saline business, which generates $1.1 billion annual sales [euro 835 million] supplying cockpit modules, instrument panels, door panels and center consoles for 12 vehicle programs assembled at eight Ford plants throughout North America. With this acquisition, Faurecia’s objective is to create a new operation that is optimized for efficient production, in line with the Faurecia Excellence System, the French giant said.
In addition, Faurecia and Rush Group will form a joint venture called Detroit Manufacturing Systems that will do injection molding and assembly work, putting together the interiors for the Ford Mustang, Expedition and Navigator.
That business is expected to hire 500 workers.
Faurecia, the world’s sixth-largest automotive equipment supplier, provides the global automotive industry with seats, interiors, exhaust systems and exterior parts.
Shares of Ford Motor Co. rose 6 cents to $11.16 in premarket trading.