Visteon Announces Financial Agreement with Ford; Strategic and Structural Discussions Continue
11 March 2005 - 8:47AM
PR Newswire (US)
Visteon Announces Financial Agreement with Ford; Strategic and
Structural Discussions Continue VAN BUREN TOWNSHIP, Mich., March 10
/PRNewswire-FirstCall/ -- Visteon Corporation (NYSE:VC) today
announced a financial agreement with Ford Motor Company that will
improve Visteon's operating results and cash flow and strengthen
the operations that directly serve the automaker. The details of
the financial agreement are being reported in a Securities and
Exchange Commission filing. (Logo:
http://www.newscom.com/cgi-bin/prnh/20001201/DEF008LOGO ) "This
financial agreement is the right step forward with Ford and
supports the operations that directly serve our largest customer,"
said Mike Johnston, president and chief executive officer. "The
commitments made by Ford and Visteon under this agreement will
improve Visteon's operating results and cash flow. It's a mutually
beneficial agreement that is in the best interest of both
companies." Under the financial agreement, Ford agreed to reduced
wage reimbursements from Visteon for hourly Ford-UAW employees
assigned to Visteon facilities; accelerate payment terms to
Visteon; and pay for capital expenditures at certain Visteon plants
in North America. Visteon agreed to continue uninterrupted supply
to Ford and to comply with contractual agreements with Ford and the
UAW. Ford Discussions Continue On Sept. 9, 2004, Visteon announced
it would explore strategic and structural changes to its US
business to achieve a sustainable and competitive business model.
Such changes would include Ford and Visteon's legacy businesses.
The discussions with Ford are progressing positively. The goal is
to ensure the long-term competitiveness of Visteon and a continued
supply of components to Ford, while being mindful of obligations to
the Ford-UAW employees assigned to Visteon. "We are spending a
great deal of time working with Ford to reach a conclusion," said
Johnston. "For some time now, we have had a concept that both
parties are working toward achieving. We are spending our time
working out the details of that concept. Other than our
conversations with Ford, we are not in active discussions with
anyone else." Visteon Corporation is a leading full-service
supplier that delivers consumer-driven technology solutions to
automotive manufacturers worldwide and through multiple channels
within the global automotive aftermarket. Visteon has about 70,000
employees and a global delivery system of more than 200 technical,
manufacturing, sales and service facilities located in 25
countries. This press release contains "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward- looking statements are not guarantees of future
results and conditions but rather are subject to various factors,
risks and uncertainties that could cause our actual results to
differ materially from those expressed in these forward-looking
statements, including the automotive vehicle production volumes and
schedules of our customers, and in particular Ford's North American
vehicle production volumes; the successful completion of our
discussions with Ford and, if successful, implementing structural
changes that result from those discussions to achieve a competitive
and sustainable business; our ability to satisfy our future capital
and liquidity requirements; our successful execution of internal
performance plans and other cost-reduction and productivity
efforts; charges resulting from restructurings, employee
reductions, acquisitions or dispositions; our ability to offset or
recover significant material surcharges; the timely completion of
the review of our prior period financial statements referred to in
our press release of January 31, 2005; and any adjustments that may
result from such review; the effect of pension and other
post-employment benefit obligations; as well as those factors
identified in our filings with the SEC (including our Annual Report
on Form 10-K for the year-ended December 31, 2003). We assume no
obligation to update these forward-looking statements.
http://www.newscom.com/cgi-bin/prnh/20001201/DEF008LOGO DATASOURCE:
Visteon Corporation CONTACT: Media Inquiries: Kimberly A. Welch,
+1-734-710-5593, , or Analyst Inquiries: Derek Fiebig,
+1-734-710-5800, , both of Visteon Corporation Web site:
http://www.visteon.com/
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