Visteon is the visionary-sounding name Ford Motor bestowed on its automotive components unit when it was spun off in 2000. One of the largest auto parts makers in the US, the company has evolved to operate three business groups: Climate Control (climate systems, powertrain cooling systems); Electronic Products (audio systems, driver control systems, infotainment systems, powertrain and feature control modules); and Interior Products (cockpits, door modules, consoles). Ford represents about 25% of sales; Visteon also provides products and services to aftermarket customers. More than 80% of its sales are made outside the US.
The company is attempting to bounce back after a bout of bankruptcy. It filed for Chapter 11 in spring 2009 and emerged in fall 2010. Like the rest of the auto parts industry, the company suffered significantly from decreased orders and sales from OEMs, and the bankruptcies of customers GM and Chrysler further decimated its balance sheet. Visteon completed its reorganization, having reduced its debt by more than $2 billion. It was allowed to convert its existing debt -- about $1.6 billion -- to stock in a new company.
Visteon has corporate offices in Van Buren Township, Michigan; Shanghai; and Chelmsford, UK. It owns facilities worldwide in more than 25 countries.
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Despite its recent bankruptcy, Visteon's customers remained true during its reorganization. While Ford represents a quarter of Visteon's business, the Hyundai Kia Automotive Group tops that, commanding around 30% of the company's revenues. Visteon provides components to a lion's share of the top global automotive OEMs -- Daimler, Honda, Toyota, and Volkswagen is the short list.
Although Visteon's net sales increased by almost 8% ($7.5 billion to almost $8.1 billion) from 2010 to 2011, its net income plunged significantly (92%) from $1 billion to a paltry $80 million. Restructuring expenses of $34 million along with the higher costs involved in maintaining its operations ate into its profits during 2011.
Visteon has been getting rid of extraneous divisions and units in order to focus on its more profitable operations. In 2012 Visteon sold its automotive lighting operations to Varroc Group, a fellow provider of automotive parts, for $72 million in cash. The business included front and rear lighting systems and auxiliary lamps and key parts such as projectors and electronic modules. The divesture allowed Visteon to focus on its most lucrative business segment: Climate Control. Visteon also wishes to concentrate on the more profitable products within its Electronic Products operations. – less
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$15.92 per hour
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3 salaries reported
$63,148 per year