Visteon Completes Transaction With Ford, Strengthens Competitive Structure in North America
01 October 2005 - 3:08PM
PR Newswire (US)
VAN BUREN TOWNSHIP, Mich., Oct. 1 /PRNewswire-FirstCall/ -- Visteon
Corporation (NYSE:VC) has completed a transaction with Ford Motor
Company that establishes a more competitive structure for Visteon's
North American manufacturing operations and allows the global
automotive supplier to focus resources on core products. The two
companies closed the transaction early today after announcing
definitive agreements on Sept. 13 that were closely aligned with a
memorandum of understanding reached in May. (Logo:
http://www.newscom.com/cgi-bin/prnh/20001201/DEF008LOGO ) Upon
completion of the transaction, 23 facilities in North America
transferred from Visteon to a Ford-managed business entity,
Automotive Components Holdings, LLC. Under the agreements, Visteon
terminated its arrangement to lease about 18,000 Ford-United Auto
Workers hourly employees who work in these facilities. The
transaction reshapes Visteon from a company with 2004 revenue of
$18.7 billion to a leaner, more competitive $11.4 billion
organization, based on estimated 2005 pro forma revenue. Visteon
will focus its engineering and capital resources on products that
have been generating most of its new business with vehicle
manufacturers around the world -- interiors, climate control and
electronics, including lighting. Visteon remains one of the world's
major automotive suppliers, with approximately 50,000 employees in
170 facilities in 24 countries. "Completing this transaction gives
Visteon a more cost-competitive North American structure, a more
balanced customer portfolio and a more evenly distributed regional
revenue mix," said Chairman and Chief Executive Officer Mike
Johnston. "We still have much work to do, including significant
additional restructuring actions over the next several years, to
achieve sustainable success in a highly competitive industry."
Visteon launched a new organization to support the operations of
Automotive Components Holdings in areas such as manufacturing,
customer support, product development, materials
management/purchasing, quality, finance, human resources,
information technology and facilities management. Approximately
5,000 salaried Visteon employees in North America now support
Automotive Components Holdings, which will reimburse Visteon for
the cost of these employees. The plants and facilities that
transferred from Visteon to Automotive Components Holdings include
13 facilities in Michigan; two each in Ohio and Tennessee; one each
in Indiana, Missouri and Oklahoma; and three in Mexico. Visteon
Corporation is a leading global automotive supplier that designs,
engineers and manufactures innovative climate control, interior,
electronic and lighting products for vehicle manufacturers, and
also provides a range of products and services to aftermarket
customers. With corporate offices in Van Buren Township, Mich.
(U.S.); Shanghai, China; and Kerpen, Germany; the company has more
than 170 facilities in 24 countries and employs approximately
50,000 people. 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; our
ability to satisfy our future capital and liquidity requirements
and comply with the terms of our credit agreements; the results of
the investigation being conducted by Visteon's Audit Committee and
the company's inability to make timely filings with the SEC; the
financial distress of our suppliers; our ability to implement, and
realize the anticipated benefits of, restructuring and other
cost-reduction initiatives and our successful execution of internal
performance plans and other productivity efforts; charges resulting
from restructurings, employee reductions, acquisitions or
dispositions; our ability to offset or recover significant material
surcharges; 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, 2004). 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: Jim Fisher,
+1-734-710-5557, , or Investor Inquiries: Derek Fiebig,
+1-734-710-5800, , both of Visteon Corporation Web site:
http://www.visteon.com/
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