Francisco said FMC decided to engage in other manufacturing activities to make use of its facilities that had been intended for the assembly of Ford model pick-ups and econovans.
"The production agreement with ATSC is a new lease on FMC’s life," he said.
FMC expects to earn P14 million in the first year of the agreement which is expected to run for three years.
For the second year, FMC sees earnings tripling to P43 million and by the third year, the company sees earnings of as much as P400 million.
FMC has been financially crippled by its still unresolved dispute with Mazda.
Francisco gave assurance that its production agreement with ATSC will make the Blue Bird buses available locally.
"The Blue Bird buses are among the safest buses on the road," Francisco said.
"The bus chassis will be made available to FMC in March this year, while the built-up units will be available six months later," he added.
As part of its agreement with ATSC, Francisco said, FMC engineers will be trained in the US to ensure a high level of quality.
He added that Cummins engines will be used in the buses. "Cummins diesel engine are so clean that they comply with the strict environmental standards imposed in Europe," Francisco said.
FMC will utilize its remaining 200 employees to assemble the Blue Bird buses.