The new entity will manage the plants until they are sold, which Ford hopes to accomplish by 2008 or 2009. Visteon was spun off from Ford five years ago. Ford is also paying $550 million in restructuring costs as part of the deal. Ver, a 33-year veteran of Ford, was originally selected to become the business unit's president andchief operating officer; he will keep those titles in addition to that of CEO. The company has not named a replacement for Ver at Ford.

Visteon has struggled to make a profit since the spinoff. The supplier has been burdened with costly labor agreements and rising raw materials costs, even as Ford continues to cut production. The deal, which is expected to close Sept. 30, will cut Visteon's revenue to $11 billion from $18 billion but reduces the company's dependence on Ford. Currently, Ford accounts for 70% of Visteon's business and will account for 50% of the new venture.