Ford Spin-Off Will Create This New Venture

Ford Motor Co. (NYSE:F) announced Thursday that it will spin off former subsidiary Visteon Corp.’s (NYSE:VC) Saline, Michigan-based plant in the creation of a minority-owned joint venture.

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The new venture will be called Detroit Manufacturing Systems LLC and involves supplier Faurecia North America and Michigan-based Rush Group. Owned by Mohawk Indian tribe descendant Andrea Rush, Rush Group will own the majority of the new venture.

Ford acquired the Saline plant in 2005 in a bailout of Visteon, and has since been struggling to get rid of its old subsidiary’s assets. According to Ford, Detroit Manufacturing Systems offered employment to nearly all workers at the Gateway Industrial Center in Detroit where the new business will kick off this summer. The new company will employ about 500 workers.

Faurecia will acquire operations at the Saline plant from Automotive Component Holdings LLC, which is managed by Ford, to become Ford’s third-largest supplier. The plant generates more than $1 billion in annual revenue.

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