it is acquiring the . Faurecia and Rush Group Ltd. have formed a joint ventural called Detroit Manufacturing Systems, which will do injection molding, assembly and sequencing of interior trim components from a new facility in Detroit.
Currently, the Saline plant does $1.1 billion of sales annually. Faurecia says that number will fall to $400 million as work is transitioned to DMS. Additionally, the Saline workforces will be scaled down from 2,100 to 1,100. Previously, the a contract that reduces starting wages to $11 an hour.
Mike Heneka, President of Faurecia North America, answered questions from Saline Patch.
1. How much of the 1.6 million square-foot Saline plant will be used?
Plans are still underway for the specific footprint of the future plant. The creation of the modern and optimized Saline facility will occur over the next few years.
2. How many jobs will remain in Saline one the transition is complete? (Editor's note: There are approximately 2,100 now)
Faurecia is working with Ford, ACH and DMS to place nearly all employees at the new and existing facilities. Once the transformation is complete, approximately 1100 employees (hourly + salaried) will work in Saline.
3. What work will be transitioned away from Saline?
Assembly operations for the Ford Mustang and Ford Expedition/Lincoln Navigator.
4. How many jobs are moving to Detroit?
Approximately 1100 employees (hourly + salaried) will be in Saline and approximately 500 will be at DMS.
5. Who will own the real property/plant? Is Faurecia buying the facility or leasing? If not buying, why not?
To efficiently use our resources and invest more in our core business, Faurecia’s global strategy is to lease the buildings it uses for operations. We will lease the building of the Saline plant from ACH.
6. Ford/Visteon was here for decades. What kind of commitment is Faurecia making to the community of Saline? Is this a facility which will gtrow over time?
Faurecia expects to invest in the plant for capital improvements, manufacturing, materials and employee programs to drive manufacturing excellence. Faurecia will implement new policies designed to focus on employee involvement, to train employees in lean manufacturing and to improve production quality through the Faurecia Excellence System (FES), a proven approach promoting continuous progress that capitalizes on the best practices from inside and outside the company.
7. How much did Faurecia pay?
Financial details of this agreement are confidential.
(Editor's Note: Faurecia announced the deal will have no significant impact on Faurecia’s debt and cash position, according to the release.)
8. When will we see a new sign on Michigan Avenue.
Our target date for the official transition is June 1, 2012.
(Editor's Note: This story has been altered to correct the number of employees at the Saline plant. We reported 2,300. It has dropped to 2,100 since our last check.)