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Visteon

Visteon Corporation
Company typePublic
IndustryAutomotive industry
Founded2000 in Michigan, USA
HeadquartersVan Buren Township, Michigan, USA
Area served
Worldwide
Key people
Sachin Lawande (President and CEO)
ProductsAutomotive cockpit electronics
RevenueUS$3.76 billion[1] (2022)
Number of employees
20,000[2] (2023)
Websitevisteon.com

Visteon Corporation (VC) is an American global automotive electronics supplier based in Van Buren Township, Michigan. Visteon designs, engineers, and manufactures vehicle cockpit electronics products, connected car services and electrification products[3] for a diversified customer base, including nearly all of the major automakers worldwide.[4]

Introduction

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In 2022, Visteon had sales of US $3.76 billion and approximately 10,000 employees at more than 40 facilities in 18 countries.[5] Visteon has set a corporate goal of expanding business with other companies, and now has a diversified customer base, working with all of the major automakers worldwide.[4] Visteon's market share, market and revenue have changed substantially since it formed. Today, its revenue comes predominantly from Asia, North America, and Europe. In 2005, Visteon moved to new headquarters in Van Buren Township, Michigan.

Business

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Initially, Visteon participated in three main divisions: climate, electronics, and interior systems. With the sale of its equity interest in the Climate operations in mid-year 2015 and completed sale of its interiors business in 2016, Visteon re-focused on the high-growth cockpit electronics business with a focus on software and the connected car.

In 2015, Visteon introduced Sachin Lawande as the new president and CEO.

Operations

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Visteon's global headquarters is located in Van Buren Township, Michigan. The company also has additional facilities in Mexico, Brazil, Argentina, Portugal, United Kingdom, Germany, France, Slovakia, Romania, Bulgaria, Hungary, Tunisia, India, China, Thailand, Korea and Japan.

Products

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Restructuring

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On September 13, 2005, Visteon and Ford reached an agreement whereby seventeen of the less-profitable Visteon plants and six offices would be transferred to an independent business entity called Automotive Components Holdings LLC. This action, intended to assure the long-term viability of Visteon, involved the transfer of 18,000 hourly workers and 5000 salaried workers to the new entity, reducing Visteon to approximately 52,000 employees worldwide and $11 billion in annual sales. Three of the plants are in Mexico, the remaining plants and six offices are in the US. Automotive Components Holdings (ACH), managed by Ford, was referred to as a "temporary entity", as its purpose was to prepare the plants and facilities for sale. By the end of 2007, all ACH operations had been closed, scheduled for closure, merged at least partially, or sold (two back to Ford), with transactions to be completed by the end of 2008 except for one plant which is to remain an ACH facility until its closure in 2009.[6]

On March 31, 2009, Visteon's UK subsidiary was deemed insolvent, and placed into administration.[7] The UK subsidiary had never been profitable, and the insolvency was the result of the US parent company being unwilling to continue to support the British operation. The administrators, KPMG, immediately moved to close all three Visteon UK factories and made 565 workers redundant. Visteon's profitable UK subsidiary Visteon Engineering Services (VES) remained unaffected by the restructuring.

As a result, workers occupied the plants in Belfast, Northern Ireland, and Enfield, London, and picketed the plant in Basildon, Essex, to gain better redundancy packages.[8]

Bankruptcy and emergence

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The Subprime mortgage crisis greatly impacted the auto industry and left Visteon with little demand. During early March 2009, Visteon was delisted from the New York Stock Exchange for trading at extremely low levels. This action came after Visteon shares dropped from 7 to 2 cents.[9] On May 28, 2009, the company filed voluntary petitions to reorganize Visteon Corporation and certain of its U.S. subsidiaries under Chapter 11 of the U.S. Bankruptcy Code.[10] The case was heard in Delaware on May 29, 2009, by Judge Christopher Sontchi,[11] where Visteon was granted Chapter 11 protection.

Visteon completed its reorganization and emerged from Chapter 11 on October 1, 2010.[12]

Acquisitions

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In July 2014, Visteon acquired Johnson Controls electronics division for $265 Million.[13] In July 2016, Visteon acquired AllGo Embedded Systems Pvt Ltd.[14]

References

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  1. ^ "Visteon Announces 2022 Financial Results and 2023 Outlook" (Press release).
  2. ^ "Visteon". WSJ. Retrieved 2020-10-04.[permanent dead link‍]
  3. ^ "Visteon Corporation: Profile". www.visteon.com. 2017-07-19. Archived from the original on 2008-05-17. Retrieved 5 July 2018.
  4. ^ a b "Visteon: A Leader in Automotive Electronics Technology". www.slideshare.net. 2017-01-12. Archived from the original on 2017-01-20. Retrieved 5 July 2018.
  5. ^ "Visteon Reports Strong 2017 Financial Results". visteon.com. Archived from the original on 22 March 2018. Retrieved 5 July 2018.
  6. ^ "ACH's bid to sell former Ford plants on track; first sale made". 25 January 2008. Retrieved 5 July 2018.
  7. ^ "KPMG appointed administrators of Visteon UK - Accountancy Age". 31 March 2009. Retrieved 5 July 2018.
  8. ^ "Car plant workers occupy factory". BBC News. April 1, 2009.
  9. ^ "Detroit Free Press". Detroit Free Press. Retrieved 5 July 2018.
  10. ^ "Removed: News agency feed article". The Guardian. London. May 7, 2008.
  11. ^ "Business". The Guardian. London. May 7, 2008.
  12. ^ "Visteon Completes Reorganization". Visteon. October 1, 2010. Retrieved November 23, 2010.
  13. ^ "Johnson Controls Sells Automotive Electronics Business to Visteon Corporation". The Wall Street Journal. January 13, 2014. Archived from the original on January 14, 2014. Retrieved January 13, 2014.
  14. ^ "AllGo- For Release 2016". www.allgosystems.com. Archived from the original on 5 July 2018. Retrieved 5 July 2018.