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Electronics Production | January 30, 2009

Visteon continues restructuring

Visteon continues to take other aggressive actions in light of the current vehicle production environment. The company is on track to complete, by the end of first quarter 2009, the reduction of 800 salaried employees globally, announced in October 2008.
This action will generate an estimated per annum savings of $60 million once completed. For the month of January 2009, Visteon adopted a four-day workweek schedule for about 2,000 salaried employees at its Van Buren Township and Plymouth, Mich., facilities commensurate with a 20% reduction in base salaries. This action will be reassessed based on future market conditions. The company also has implemented other actions to reduce costs including the suspension of 401(k) matching contributions and 2009 salary increases, the elimination of certain benefit programs, and a reduction in new hiring. Additional actions are being taken to reduce capital expenditures, working capital and non-personnel expenses.

Additional to that, Visteon is rumoured to prepare for possible bankruptcy proceedings. However, sources to the Wall Street Journal stated that the hiring of legal and financial advisers did not mean a bankruptcy filing was imminent.

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December 13 2018 1:08 pm V11.10.14-1