Ford CFO: We Will Treat Visteon As A Standalone Company
30 January 2009 - 3:19AM
Dow Jones News
Ford Motor Co. (F) will treat Visteon Corp. (VC) as a
"standalone company", raising the possibility that the supplier
won't receive any financial assistance from its former parent.
Chief Financial Officer Lewis Booth said the auto maker is more
than willing to work with Visteon but the struggling company won't
receive any special treatment above any other supplier. Booth made
the comments on a conference call to discuss Ford's earnings.
Visteon has reportedly hired legal and financial advisers to
prepare for possible bankruptcy proceedings, according to the Wall
Street Journal, citing people familiar with the matter. The hirings
don't mean a bankruptcy filing is imminent, the people said.
Visteon, which now trades below 20 cents, has been hit as auto
makers, including Ford, have reduced their output amid slumping
sales around the world. The company ended 2008 with $1.2 billion in
cash and has taken to freezing salaries and slashing jobs to
control costs. The company has been restructuring for the past four
years after Ford bailed out the company, which included taking back
some its plants.
Visteon shares fell 1.9% to 16 cents in earlier trading while
Ford shares fell 2% to $1.99.
-By Jeff Bennett, Dow Jones Newswires; (248) 204-5542;
jeff.bennett@dowjones.com
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