Dearborn, Michigan -- Ford Motor Co. and Automotive Components Holdings llc are to sell ACH's automotive interior trim components business to Faurecia. This unit is the only operation at the ACH Saline plant
The transaction is scheduled to close 1 June.
With this acquisition, Faurecia said, it will become North America's No. 1 interior systems supplier.
The Saline business generates $1.1 billion in annual sales, supplying cockpit modules, instrument panels, door panels and centre consoles for 12 vehicle programmes assembled at eight Ford plants throughout North America. Faurecia said in a statement that it aims to create a new operation that is optimised for efficient production.
The companies said, "nearly all employees associated with the business have been offered employment."
The deal includes the formation of a new joint venture, Detroit Manufacturing Systems (DMS), between Faurecia and Rush Group Ltd - a Rush Group unit that includes one of Ford's largest minority- and woman-owned suppliers. DMS will do injection moulding, assembly and sequencing of interior trim parts. About 500 people are expected to be employed at the DMS facility in Detroit.
"This announcement is an important milestone for Ford and ACH and marks a major development in our journey to develop a financially healthy, diverse supply base," said Tony Brown, group vice president, Ford Global Purchasing, in the statement. "Ford also is proud to play a role in helping to revitalise Detroit at this critical time for the city."
In future, the Saline plant will focus on core technologies such as skin manufacturing, foam operations and injection moulding, operations with annual revenue of nearly $400 million.
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.
Following this sale, ACH will have only two remaining operations: a climate control business at its Sheldon Road plant and the lighting business at its Sandusky, Ohio, plant.
"This sale is another significant and noteworthy step as we move closer to achieving our strategic vision for Automotive Components Holdings," said Mark Blair, ACH president and ceo.
Faurecia is the world's sixth-largest automotive equipment supplier.
ACH is a group of automotive components businesses formerly owned by Ford and now largely divested.