Visteon Completes Transaction With Ford, Strengthens Competitive Structure in North America

VAN BUREN TOWNSHIP, Mich., Oct. 1, 2005 -- Visteon Corporation has completed a transaction with Ford Motor Company that establishes a more competitive structure for Visteon's North American manufacturing operations and allows the global automotive supplier to focus resources on core products. The two companies closed the transaction early today after announcing definitive agreements on Sept. 13 that were closely aligned with a memorandum of understanding reached in May.

Upon completion of the transaction, 23 facilities in North America transferred from Visteon to a Ford-managed business entity, Automotive Components Holdings, LLC. Under the agreements, Visteon terminated its arrangement to lease about 18,000 Ford-United Auto Workers hourly employees who work in these facilities.

The transaction reshapes Visteon from a company with 2004 revenue of $18.7 billion to a leaner, more competitive $11.4 billion organization, based on estimated 2005 pro forma revenue. Visteon will focus its engineering and capital resources on products that have been generating most of its new business with vehicle manufacturers around the world -- interiors, climate control and electronics, including lighting. Visteon remains one of the world's major automotive suppliers, with approximately 50,000 employees in 170 facilities in 24 countries.

"Completing this transaction gives Visteon a more cost-competitive North American structure, a more balanced customer portfolio and a more evenly distributed regional revenue mix," said Chairman and Chief Executive Officer Mike Johnston. "We still have much work to do, including significant additional restructuring actions over the next several years, to achieve sustainable success in a highly competitive industry."

Visteon launched a new organization to support 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. Approximately 5,000 salaried Visteon employees in North America now support Automotive Components Holdings, which will reimburse Visteon for the cost of these employees.

The plants and facilities that transferred from Visteon to Automotive Components Holdings include 13 facilities in Michigan; two each in Ohio and Tennessee; one each in Indiana, Missouri and Oklahoma; and three in Mexico.

Visteon Corporation is a leading global automotive supplier that designs, engineers and manufactures innovative climate control, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. With corporate offices in Van Buren Township, Mich. (U.S.); Shanghai, China; and Kerpen, Germany; the company has more than 170 facilities in 24 countries and employs approximately 50,000 people.