Blue Bird to Buy Detroit Chassis Assets in Ford Collaboration Deal
The asset acquisition is part of a broader agreement with Ford Motor Company to design and commercialize the next generation of F-53 and F-59 commercial stripped chassis.
Blue Bird Corporation (BLBD) agreed to acquire the Detroit Assembly Plant assets of Detroit Chassis LLC in an asset-purchase transaction. The deal is expected to close in early 2027.
The acquisition is a central component of a larger collaboration between Blue Bird and Ford Motor Company to develop the next generation of F-53 and F-59 commercial stripped chassis. Under the terms of the agreement, Blue Bird will assume responsibility for the design, manufacturing, and sales of these chassis, which will be paired with Ford powertrain solutions. New production is anticipated to begin in early 2028.
The move is intended to expand Blue Bird's presence in the commercial vehicle market and provide access to the last-mile, commercial, and RV segments. "This move is a significant component of our Long-Term Strategy, and will position us to be a growing player in the specialty vehicle/chassis market," said John Wyskiel, President and CEO of Blue Bird Corporation.
Detroit Chassis LLC has served as the long-time manufacturer of Ford's F-53 and F-59 stripped chassis platforms. By integrating the assets of the Detroit Assembly Plant, Blue Bird intends to combine the existing know-how of Detroit Chassis with its own manufacturing capabilities and Ford's powertrain technology.
Blue Bird expects the initiative to expand its total addressable market by $1.4 billion. The company projected that the venture would eventually generate more than $600 million in revenue and an adjusted EBITDA margin of 12% or more in the mid-term.
To facilitate the launch, Blue Bird plans a $90 million investment in 2027, consisting of approximately $50 million in capital expenditures and $40 million in operating expenses. The company expects to integrate Ford's next-generation medium-duty gas powertrains through 2033 or 2036.