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

Article by Christian A., 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:

Comments

Recommended

Bimmerpost has posted several cool pictures of the new BMW G30 540i and the new G31 generation BMW 5-Series Touring, with both wearing the brilliant Rhodonite Silver Individual colour. The...
by - October 23, 2017
A few years ago, Lotus tried to take on Porsche. They had a five-car plan to go against competitors like Ferrari and Aston Martin. Though it did not go well,...
by - October 23, 2017
To keep the Nissan Maxima interesting, the Japanese automaker gives the 2018 model year a number of small tweaks. Some of these include standard Android Auto, which is a new...
by - October 23, 2017
It looks as if Chevrolet has everything planned out in terms of production. Firstly, they have plans of introducing the Corvette ZR1 in a few months, which will then be...
by - October 23, 2017
While Tesla Motors continues to struggle with regards to the assembly of its much awaited Tesla Model 3, investment firm Oppenheimer & Co. is confident that its previous production estimates...
by - October 22, 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