The transfer of the plants, along with six offices, research centers and other facilities in the US and Mexico to Ford is expected to take place on Oct. 1. The transfer includes 13 facilities in Michigan; two each in Ohio and Tennessee; one each in Indiana, Missouri and Oklahoma; and three in Mexico.
Under the agreement, a temporary company managed by Ford executives called Automotive Components Holdings LLC, will take control of the plants and other facilities. Visteon expects to assign about 5,000 salaried employees to the new company, which also will take on about 18,000 hourly employees now working in Visteon facilities and about 70 Ford salaried employees.
Visteon execs say the plan was necessary to help it reach profitability. Visteon spun off from Ford in 2000 and still accounts for almost half of the parts used in manufacturing Ford vehicles. "The arrangement is a key element of Ford North America's strategy to improve our cost structure while protecting the supply of components," says Al Ver, Ford vice president and CEO/COO of Automotive Components Holdings.
"We are preparing business plans for each business to address the gaps with its key competitors," Ver adds. "We must move aggressively and quickly to prepare these operations for sale to companies that can take them forward."
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