Visteon to sell its automotive lighting business to India-based Varroc Group

Article by Christian Andrei, on February 21, 2012

Talks are ongoing between Visteon Corp. and India-based Varroc Group over the sale of its automotive lighting business, according to three sources. Visteon is attempting to sell two of its four auto parts-making units. Two sources said that a deal may be reached at the end of February at the earliest. It’s still possible though that discussions will break down.

They also said that this unit, which is the smallest Visteon unit, could fetch $75 million to $100 million. They said that it could get a net worth of $150 million, so Visteon may have to take a noncash writedown related to the sale.

These talks are part of the management's plan for the one-time Ford Motor Co. parts unit, which emerged from a 16-month bankruptcy in 2010, to reduce lower-margin revenue in interiors and lighting to focus on the operations in Asia that are growing far quicker. Varroc is a supplier of parts for passenger and commercial vehicles and motorcycles and is based in Aurangabad, India.

Its Web site stated that some of its customers are Honda Motor Co., Yamaha Motor Co., Fiat S.p.A., General Motors Co., Caterpillar Inc. and Visteon. Visteon's lighting unit is the sixth-largest in the world with $456 million in consolidated revenue in 2010.

This entire market is valued at around $9.5 billion. In a July presentation, the company said that North America and Europe account for around 81% of the revenue. From the presentation, we also learned that this unit’s gross margin, which calculates gross profit as a percentage of revenue, is 2.6%. [source: Autonews]

Topics: visteon

If you liked the article, share on:


Login or Create new account to add a comment!


Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016
Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016