Faurecia SA has entered a deal to buy the interior parts business of Ford Motor Co. located at its Saline, Mich. plant for an amount that has yet to be disclosed, according to Ford’s announcement. Faurecia, which is based in Paris, will acquire the Saline site found near Ann Arbor, Mich. It supplies cockpit modules, instrument panels, door panels and center consoles to Ford plants.
It has reported annual sales of $1.1 billion. The deal was first reported last Wednesday by Crain's Detroit Business, an Automotive News affiliate. Ford's Automotive Components Holdings unit is the owner of this plant, which produces automotive interiors for vehicles like the Ford F-150.
Ford would be the third-biggest customer of Faurecia after Volkswagen AG and PSA Peugeot Citroen, its majority shareholder. Ford’s ACH unit will still be the owner of the Saline unit, which Faurecia will lease. Faurecia said that it will make a Detroit-based joint venture with Rush Group Ltd. The statement said that Faurecia would have a 45% stake in the company, which will make injection molding and assemble interior trim parts.
UAW, which supported the transaction, will fill 500 jobs at the new Detroit factory. In a statement, Jimmy Settles, director of the UAW's Ford department, said that he is “pleased” that the jobs for UAW members as well as those in the communities will be protected because of the sale of the Saline ACH business. He added that the UAW is dedicated to promoting diversity and is hoping to continue its relationship with the Rush Group.