DETROIT (May 2, 1:40 p.m. ET) – Ford Motor Co. is orchestrating a deal to create a major minority-owned auto supplier, according to a report from Crain's Detroit Business.
The report, in Dustin Walsh's “Shifting Gears” blog, cites an unnamed source who said Ford is requiring Faurecia North America to create a minority owned supplier joint venture called Detroit Manufacturing Systems LLC.
Faurecia North America is a unit of Nanterre, France-based Faurecia SA. The company is a supplier of seats, interiors, exhaust systems and exterior parts.
Walsh reported that the joint venture will run 25 percent of the 1.6 million-square-foot former Visteon Corp. auto interiors plant in Saline, Mich.
In exchange for creating the JV, Ford will give the venture a nearly $1 billion book of business, Walsh reported.
The joint venture, Detroit Manufacturing Systems LLC, was created with Wayne, Mich.-based Rush Group, which is owned by Andra Rush, who descends from the Mohawk Indian tribe, Walsh reported. Rush Group will hold the majority stake.