Visteon, the large automotive supplier, continues to reshape itself from a vendor of interior trim to one that focuses on electronics. Visteon announced that it is selling its half of Yanfeng Visteon Automotive Trim Systems to it’s Chinese joint venture partner Huayu Automotive Systems, for ~$1.2 billion. At the same time, Visteon will be buying majority ownership of the JV’s electronics unit, Yanfeng Visteon Automotive Electronics Co., for $68 million.
“These transactions support our focus on our core climate and electronics businesses and will bring significant benefits to Visteon, our customers and our shareholders,” CEO Timothy Leuliette said in a statement.
While an arrangement to sell Huayu Automotive the rest of Visteon’s interior component business fell through because stagnant sales in Europe dissuaded Huayu from buying the entire package, a Visteon spokesman said that it is still focused on divesting its remaining interior operations. Visteon now sees its core operations to be in supplying electronics and another core competency in profitable HVAC components.