Visteon Continues to Divest Interior Trim Operations, Focuses on Electronics and HVAC

by TTAC Staff

Published: August 13th, 2013

visteon continues to divest interior trim operations focuses on electronics and hvac

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.

#Huayu #Suppliers #Visteon #Yanfeng

TTAC Staff

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2 comments

Austin Greene on Aug 13, 2013

Isn't this Motorcraft by another name?

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- Ronnie Schreiber on Aug 13, 2013
  
  Kinda, sorta. Visteon was spun off from Ford's parts division back when folks in Detroit decided they didn't want to be so vertically integrated. Visteon is to Ford what Delphi is to GM. I never quite understood the logic of "let's spin off a critical supplier because we think they're going broke" business model. Every time a critical Tier 1 or Tier 2 supplier is financially endangered, their customers have to step in and save them, just to keep their own factories humming.
  
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