Visteon hopes to take advantage of a recovering auto market, report says

Article by Christian A., on September 10, 2010

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]

If you liked the article, share on:

Comments

Recommended

Another day, another record. Is the new Dodge Challenger SRT Demon the fastest car to date? According to some sources, the Dodge Challenger SRT Demon had just beaten the Tesla...
by - April 24, 2017
Following in the footsteps of the McLaren 570S, 540C and 570GT is the newest addition to the McLaren Sports Series -- the roofless 570S Spider. McLaren 570S was rolled out...
by - April 24, 2017
The British automaker Lotus is noted for releasing low production, limited editions of its sports car lineage. Now the Hethel-based automobile manufacturer is back at it again with its latest...
by - April 24, 2017
Earlier this week, the revamped 2018 Mercedes-Benz S-Class was revealed ahead of the 2017 Shanghai Auto Show. As expected, Mercedes Benz’s flagship model is now offered in several variants including...
by - April 24, 2017
Well, this is clearly not good news for everyone. Ever since the new BMW M4 CS rolled out in Shanghai last week, several reports about its limited production have quickly...
by - April 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries