French auto parts maker Faurecia will acquire Ford Motor's Saline, Michigan-based automotive interior trim business, which is currently operated by Automotive Components Holdings (ACH).
The Ford's Saline business generates $1.1bn annual sales by supplying cockpit modules, instrument panels, door panels and center consoles for 12 vehicle programs assembled at eight Ford plants throughout North America.
Faurecia with the new acquisition intends to create a new operation that is optimized for efficient production, in line with the Faurecia Excellence System.
Faurecia chairman and CEO Yann Delabriere said the acquisition reinforces the company's leadership position in interior systems and its global partnership with Ford Motor Company.
"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," Delabriere said.
The Saline facility will focus on core technologies such as injection moulding, skin manufacturing and foaming operations in future.
Following the acquisition, Faurecia will get Ford Motor Company as the third largest customer.
The Saline operation transition will happen in 1 June 2012.
The French parts company will also enter into a new joint venture with Rush Group called Detroit Manufacturing Systems (DMS) to do injection moulding, assembly and sequencing of interior trim components from a new facility in Detroit.
