Visteon Corp., which expects to emerge from bankruptcy protection by Oct. 1, is “exiting at the right time, during a recovering market,” according to Van Conway, the founder of Conway MacKenzie Inc., a suburban Detroit consulting firm that does extensive work with suppliers.
Visteon Corp. has been in bankruptcy for almost 15 months and is optimistic that it will be able to benefit from a recovering auto market.
It hopes to leverage its strengths and streamlined product portfolio, and gain from the expertise of a revamped corporate board. On Aug. 31, the US Bankruptcy Court in Delaware approved Visteon's reorganization plan, including a $700 million exit financing package.
Conway believes that there’s more margin potential now “because customers are stronger.” Visteon had scrapped many of its manufacturing plants in the US and in Mexico.
It also sold off its climate controls plant in Connersville, Ind.; a plant in Saltillo, Mexico; and one in suburban Detroit to Johnson Controls Inc. and its Mexican subsidiary, Johnson Controls Automotriz Mexico, S de RL de CV, under a deal made last April.
During the last eight months, Visteon also divested ancillary product lines to concentrate mainly on interiors, electronics and powertrain controls.
Kevin Marsh, partner at Angle Advisors-Investment Banking, of suburban Detroit, said that selling noncore divisions and pruning manufacturing capacity were good moves. [via autonews - sub. required]