Visteon is divesting global auto interiors ops to Cerberus affiliate

Article by Christian A., on May 6, 2014

Visteon Corp. has inked a deal to divest its global automotive interiors operations to an affiliate of Cerberus Capital Management LP. Under the terms of the agreement, Cerberus assumes around $20 million in pension liabilities of the unit while Visteon will make a $95-million investment into the business under Cerberus.

Visteon will also provide $90 million in revolving credit to bridge the agreement that will be repaid by Cerberus. Visteon, however, will still take control of certain real estate assets of the business unit -- worth $35 million -- in South America and Europe.

Visteon’s global automotive interiors unit supplies automotive cockpit modules, instrument panels, door panels and floor panels from 15 sites and six engineering centers in Asia, Europe and South America.

In the fourth quarter of 2013, Visteon posted $317 million in interiors revenue, representing a $19-million decline from the same period in 2012.

Visteon attributed $12 million of the drop to lower production volumes in Europe, where it is heavily focused. The unit posted $1.26 billion in 2013 in revenues in 2013, down from $1.39 billion in 2012.

Visteon chief executive Timothy Leuliette said in a statement that the deal supports the company’s intention to divest its interiors business and concentrate on core thermal management and cockpit electronic ecosystems operations.

Visteon has also completed an agreement to sell its 50-percent stake in joint venture Duckyang Industry Co. Ltd. to Duckyang stakeholders for $24.1 million and around $6 million in dividends.

If you liked the article, share on:

Topics: visteon

Comments

Recommended

Renault Chairman and CEO Carlos Ghosn inaugurated the all-new Alpine A110 production line. This inauguration was attended by the Minister for Economy and Finance of France, Bruno Le Maire, with...
by - December 17, 2017
TOYOTA GAZOO Racing revealed that it will be participating in the 2018 Tokyo Auto Salon with the theme “Meister's Workshop.” The company will showcase models that have been part of...
by - December 16, 2017
Infiniti has commenced sales of the new 2018 Infiniti QX80 full-size luxury sports utility vehicle. Aside from the standard specs and optional features, potential customers would want to know how...
by - December 15, 2017
If there is one thing that Pagani Automobili and Fiat have in common, it is the fact that they are Italian companies that build and assemble vehicles. There is currently...
by - December 15, 2017
It’s Star Wars fever once again, and the second installation of the trilogy sequel -- “Star Wars: The Last Jedi” -- is finally hitting theaters. Avid fans of the franchise...
by - December 15, 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