Faurecia Announces Purchase of Saline Ford Plant

The deal ends a negotiation that began in August of 2011.

Faurecia announced May 3 that it will acquire the Saline interior components business, which is currently operated by .

Details of the sale have not yet merged, but some of the news today confirms what U Faurecia confirmed that is joining with Rush Group Ltd to form a joint venture called Detroit Manufacturing Systems. It will do injection molding, assembly and sequencing of interior trim components from a new facility in Detroit. The Saline plant will focus in the future on core technologies such as injection molding, skin manufacturing and foaming operations with annual revenues of nearly $400 million — down from the $1.1 billion in annual sales generated by the Saline facility today. Caruso has also said that at least 600 of Saline's 2,300 jobs will be shipped to the Detroit Manufacturing System, which was supported by more than $4 million in tax breaks from the Michigan Economic Development Corporation.

With this acquisition, Faurecia, already the world’s leading supplier of interior systems components, will become North America’s No. 1 interior systems supplier, according to the company.

Faurecia will acquire the Saline business, which generates $1.1 billion annual sales 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, according to the press release.

In conjunction with the Saline acquisition, Faurecia will enter into a new joint venture with Rush Group Ltd., one of the Rush Group of companies that together comprise one of the largest Native American and woman-owned businesses in North America. The joint venture, called Detroit Manufacturing Systems, will do injection molding, assembly and sequencing of interior trim components from a new facility in Detroit. Rush Group will hold the majority of the capital and the management of DMS, while Faurecia – with 45 percent of the capital – will bring its technology and manufacturing expertise to the joint-venture. As a result, the Saline plant will focus in the future on core technologies such as injection molding, skin manufacturing and foaming operations with annual revenues of nearly $400 million, according to the release.

This deal will have no significant impact on Faurecia’s debt and cash position, according to the release.

With this acquisition, Ford Motor Company will become Faurecia’s third largest customer. Faurecia will thus reinforce its position as part of Ford’s Aligned Business Framework, which it joined in June 2009. ABF companies enter into long-term relationships with Ford to strengthen collaboration and drive mutual profitability and technology development.

The target date for transitioning the Saline operation is June 1, 2012. Operations transitioning to the DMS facility will begin transferring this summer.

“The acquisition reinforces our leadership position in interior systems and our global partnership with Ford Motor Company,” said Yann Delabrière, Chairman and CEO of Faurecia. “The Saline business strategically fits with Faurecia’s key priorities, directly tying to our core focus, continuous improvement in operating performance, global customer expansion, technology leadership and strategic growth plans.”

“We see this acquisition and joint venture providing tremendous opportunities for Faurecia, Ford, employees, local communities and other key stakeholders,” said Mike Heneka, President of Faurecia North America. “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.”

“Our ABF network of suppliers is built on long-term relationships and collaboration for the mutual benefit of Ford and our suppliers,” said Tony Brown, Group Vice President, Ford Global Purchasing. “With this announcement, Faurecia is not only serving a critical business need for Ford – they are helping to provide leadership in our effort to build a financially healthy, diverse supply base.”

unhappy employee May 31, 2012 at 01:15 AM
Please Ford,,,,,Don't Go...This article doesn't mention the effect this acquisitions has on the employees.They are bringing misery and discomfort to a peaceful work environment.The only reason the new contract was ratified is because Faurecia used the hard economic times people are suffering from to their advantage."Take what we give you,or we're going to buy the plant anyway and get rid of all of you." According to some key UAW officials on the negotiating committee .A very appreciated effort for the commitee ,they did what they could and fought hard for us.I love my union,but dislike the new company I work for.I could quit,but like alot of Michaganders I need a job to support my family,which is the only thing that motivates me.As far as Faurecia goes,I wouldn't expect a good year.Until they learn how to treat their hard working employees,the peolple who really make things go.
Mark Murphy June 22, 2012 at 10:53 PM
it's late June..I've already been shorted 27 hours in just two weeks. The Union committee is no where on the floor. AND I WORK DAYS! I noticed my union dues are still being deducted. Wages Mean nothing...Brenda Sutton is unreachable (Sole payrole). Now we have to have letters from Santa claus, the tooth fairy, and the Easter bunny to get our wages correct. If this isn't a bold statement that our local is dead, then enlighten me. We've got new employes with less than 90 days walking around getting paid to do nothing and high seniority people being pounded by rising production numbers....tell me. More hours, increased production numbers, and pay shortages. No support from payroll. AND NO COMMITTEE ON THE FLOOR! If this isn't chaos..please lend me an alternate definition....I'm so embarrassed by the local's performance that I'd just soon not be a UAW local 892 member. At least I could donate my union dues to the salvation army and it would be doing SOMETHING.


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