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Visteon, Ford Sign Definitive Agreements for New Business Arrangement; Anticipate Completing Transaction Oct. 1
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Visteon Corporation (NYSE: VC) announced today that it has signed definitive agreements with Ford Motor Company, outlining terms and conditions of a new business arrangement announced by the two companies on May 25, 2005. Visteon and Ford anticipate closing the transaction on Oct. 1.
The definitive agreements are closely aligned with the memorandum of understanding (MOU) announced by Visteon and Ford on May 25, covering significant structural changes to Visteon's North American manufacturing operations, including the transfer of 23 facilities to a Ford-managed legal entity, Automotive Components Holdings, LLC. The transaction will increase Visteon's competitiveness by streamlining and improving the cost structure of its North American operations.
"This is an important step on our path to creating a more competitive North American structure, a more diversified customer portfolio and a balanced global footprint to ensure we are a profitable, globally competitive supplier," said Visteon Chairman and Chief Executive Officer Mike Johnston. "As we move closer to completing this transaction, we are progressing with plans for significant additional restructuring actions over the next several years to achieve our goal of being a winning automotive supplier. Throughout this transition, we remain focused on providing our customers with high- quality products and services."
Visteon will create a new organization focused on supporting the operations of Automotive Components Holdings in areas such as manufacturing, customer support, product development, materials management/purchasing, quality, finance, human resources, information technology and facilities management.
Jim Palmer, Visteon executive vice president and chief financial officer, said Visteon and Ford have worked diligently to define how Visteon will support Automotive Components Holdings after the transaction is completed. "We anticipate that approximately 5,000 salaried Visteon employees in North America will support Automotive Components Holdings, which will reimburse Visteon for the cost of these employees," Palmer said. "Our focus throughout this process has been to ensure that the mutual goals of Visteon and Automotive Components Holdings are achieved."
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September 14th, 2005
Source: Prnewswire.com |
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