Visteon
Encyclopedia
Visteon is one of the world's largest suppliers of automotive parts. The company formed in 1997 and spun off from the Ford Motor Company
in 2000. In 2005, Visteon moved to new headquarters in Van Buren Township, Michigan
. Visteon is to the Ford Motor Company
as Delphi
is to General Motors and Denso
is to Toyota, and Honda
is to Mitsubishi
The organization is divided into four core business groups:
Electronics being the largest of the groups as it includes Driver Information, Audio & Powertrain segments. Visteon provides a full supply chain, that is to say it designs, develops and manufactures automotive parts to the needs of its customers.
with Ford Motor Company that "intended to assure the long-term viability of Visteon", it involved the transfer of 18,000 hourly workers and 5000 salaried workers to the new entity, reducing Visteon to approximately 52,000 employees worldwide and $11 billion USD in annual sales.
Three of the plants were located in Mexico, the remaining plants and six offices are in the US. Automotive Components Holdings (ACH), managed by Ford, was referred to as a "temporary entity", as its purpose was to prepare the plants and facilities for sale. By the end of 2007, all ACH operations had closed, scheduled for closure, merged at least partially, or sold (two back to Ford), with transactions to be completed by the end of 2008 except for one plant which is to remain an ACH facility until its closure in 2009.
had never been profitable, and the insolvency was the result of the US parent company being unable to continue to support the British operation. The administrators, KPMG
, immediately moved to close all three Visteon UK factories and 565 workers were made redundant. The significant issues surrounding the Visteon UK pension fund and complex transfers between Ford to Visteon and Visteon returning to Ford and to the lately formed Visteon Engineering Services are under review by the UK Pensions Regulator and associated bodies. This remains unresolved and a potential liability to Ford and Visteon Corp and other profitable EU Visteon operations.
As a result, workers occupied the plants in Belfast, Northern Ireland and Enfield, London and picketed the plant in Basildon, Essex, to gain better redundancy
packages. After several weeks of protest Ford and Visteon jointly agreed to improve the severance packages.
The saga continues with a continuing battle to restore the Visteon (ex Ford) pensions, the charge is being led by the UNITE Union who are taking legal action against Ford; ref http://www.telegraph.co.uk/finance/newsbysector/transport/7909546/Legal-fight-looms-for-Ford-over-Visteon-pensioners.html
The ongoing protest in support of the Unite Unions actions in taking the pensions crisis caused by the collapse of Visteon UK can be followed at: http://www.visteonpensionactiongroup.co.uk/index.html
Ford Motor Company agreed to support its key supplier through the chapter 11 process by providing Visteon with Debtor-in-possession financing
.
The case was heard in Delaware
on May 29, 2009 by Judge Christopher Sontchi where Visteon was granted Chapter 11 protection.
Visteon completed its reorganization and emerged from Chapter 11 on October 1, 2010.
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
in 2000. In 2005, Visteon moved to new headquarters in Van Buren Township, Michigan
Van Buren Township, Michigan
Van Buren Charter Township is a charter township of Wayne County in the U.S. state of Michigan. The population was 28,821 at the 2010 census. It is home to Willow Run Airport, Metro Detroit's second busiest airport.-Geography:...
. Visteon is to the Ford Motor Company
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
as Delphi
Delphi (auto parts)
Delphi Automotive PLC is an automotive parts company headquartered in Troy, Michigan, USA. Delphi is one of the world's largest automotive parts manufacturers and has approximately 146,600 employees ....
is to General Motors and Denso
DENSO
is a global automotive components manufacturer headquartered in the city of Kariya, Aichi Prefecture, Japan. Established December 16, 1949 as , in 1996 the company became DENSO Corporation worldwide...
is to Toyota, and Honda
Honda
is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...
is to Mitsubishi
Mitsubishi
The Mitsubishi Group , Mitsubishi Group of Companies, or Mitsubishi Companies is a Japanese multinational conglomerate company that consists of a range of autonomous businesses which share the Mitsubishi brand, trademark and legacy...
Business
Visteon's market share, market and revenue has changed substantially since it formed. A majority of revenue (80+%) came from North America, driven by its relationship with Ford Motor Company. Today its revenue is mainly from Europe and Asia with North America market share becoming a lesser part of its portfolio in terms of revenue and non-Ford business growing.The organization is divided into four core business groups:
- Interiors
- Climate
- Electronics
- Lighting
Electronics being the largest of the groups as it includes Driver Information, Audio & Powertrain segments. Visteon provides a full supply chain, that is to say it designs, develops and manufactures automotive parts to the needs of its customers.
Operations
The company operates in 27 countries and has three corporate offices reflecting the companies key markets.- North American Corporate Office and Innovation Center, Van Buren Township, Michigan, United States.
- Asia Pacific Corporate Office and Innovation Center, Shanghai, China
- European Corporate Office, Chelmsford, United Kingdom.
History
- In 2004, it had 70,000 employees worldwide and $18.7 billion USD in sales with over 200 facilities around the world. Since its independence from Ford, Visteon has set a corporate goal of expanding business with other companies, and now has substantial relationships with Asian manufacturers Nissan and Hyundai and others as well as with General Motors, Chrysler.
- On September 13, 2005, Visteon and Ford reached an agreement whereby seventeen of the less-profitable Visteon plants and six offices would be transferred to an independent business entity called Automotive Components HoldingsAutomotive Components HoldingsAutomotive Components Holdings, LLC is a Ford Motor Company-managed temporary business formed by the 2005 transfer of 17 automotive components factories and 6 research, testing, and other facilities from Visteon Corporation to Ford...
LLC.
- On March 6, 2009, Visteon was delisted from the New York Stock Exchange for trading below the exchange's required level for an extended period. This action came after Visteon shares dropped from a historic low of 7 cents, to 2 cents.
- On March 31, 2009, one of Visteon's subsidiaries 'Visteon UK' was deemed insolvent, and placed into administration. under the UK Insolvency Act 1986. Visteon Engineering Services (the UK based engineering development centre & European Centre) was unaffected by the insolvency of Visteon UK.
- On May 28, 2009, the company filed voluntary petitions to reorganize Visteon Corporation and certain of its U.S. subsidiaries under Chapter 11 of the U.S. Bankruptcy Code.
- On May 21, 2010, Johnson Controls made a $1.2 billion offer for Visteon electronics and interior units.
Restructuring
Visteon began a three year restructuring program from 2005-2009. During this period the number of employees and facilities dramatically reduced in an effort to fit the global operating conditions.ACH
ACH was formed following a memorandum of understandingMemorandum of understanding
A memorandum of understanding is a document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action. It is often used in cases where parties either do not imply a legal commitment or in...
with Ford Motor Company that "intended to assure the long-term viability of Visteon", it involved the transfer of 18,000 hourly workers and 5000 salaried workers to the new entity, reducing Visteon to approximately 52,000 employees worldwide and $11 billion USD in annual sales.
Three of the plants were located in Mexico, the remaining plants and six offices are in the US. Automotive Components Holdings (ACH), managed by Ford, was referred to as a "temporary entity", as its purpose was to prepare the plants and facilities for sale. By the end of 2007, all ACH operations had closed, scheduled for closure, merged at least partially, or sold (two back to Ford), with transactions to be completed by the end of 2008 except for one plant which is to remain an ACH facility until its closure in 2009.
Visteon UK
The UK subsidiarySubsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
had never been profitable, and the insolvency was the result of the US parent company being unable to continue to support the British operation. The administrators, KPMG
KPMG
KPMG is one of the largest professional services networks in the world and one of the Big Four auditors, along with Deloitte, Ernst & Young and PwC. Its global headquarters is located in Amstelveen, Netherlands....
, immediately moved to close all three Visteon UK factories and 565 workers were made redundant. The significant issues surrounding the Visteon UK pension fund and complex transfers between Ford to Visteon and Visteon returning to Ford and to the lately formed Visteon Engineering Services are under review by the UK Pensions Regulator and associated bodies. This remains unresolved and a potential liability to Ford and Visteon Corp and other profitable EU Visteon operations.
As a result, workers occupied the plants in Belfast, Northern Ireland and Enfield, London and picketed the plant in Basildon, Essex, to gain better redundancy
Layoff
Layoff , also called redundancy in the UK, is the temporary suspension or permanent termination of employment of an employee or a group of employees for business reasons, such as when certain positions are no longer necessary or when a business slow-down occurs...
packages. After several weeks of protest Ford and Visteon jointly agreed to improve the severance packages.
The saga continues with a continuing battle to restore the Visteon (ex Ford) pensions, the charge is being led by the UNITE Union who are taking legal action against Ford; ref http://www.telegraph.co.uk/finance/newsbysector/transport/7909546/Legal-fight-looms-for-Ford-over-Visteon-pensioners.html
The ongoing protest in support of the Unite Unions actions in taking the pensions crisis caused by the collapse of Visteon UK can be followed at: http://www.visteonpensionactiongroup.co.uk/index.html
Chapter 11
In its filing, Visteon listed total assets of $4.58bn (£2.88bn) and total liabilities of $5.32bn.Ford Motor Company agreed to support its key supplier through the chapter 11 process by providing Visteon with Debtor-in-possession financing
Debtor-in-possession financing
Debtor-in-possession financing or DIP financing is a special form of financing provided for companies in financial distress or under Chapter 11 bankruptcy process. Usually, this security is more senior than debt, equity, and any other securities issued by a company...
.
The case was heard in Delaware
Delaware
Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. It is bordered to the south and west by Maryland, and to the north by Pennsylvania...
on May 29, 2009 by Judge Christopher Sontchi where Visteon was granted Chapter 11 protection.
Visteon completed its reorganization and emerged from Chapter 11 on October 1, 2010.
External links
- Visteon website
- Visteon Occupation Blog on Libcom.org
- http://www.visteonpensionactiongroup.co.uk/index.htm
- http://www.visteonpensionactiongroup.co.uk/index.html