Visteon Reports Q3

October 19, 2001 Distributed By Visteon Corporation

Dearborn, Michigan - Visteon Corporation today announced a Third Quarter loss of $95 million or $0.74 per share. Excluding restructuring actions, the loss was $74 million or $0.57 per share. Visteon earned $48 million or $0.37 per share in the Third Quarter of 2000.

"It was a difficult quarter. Our results reflect unexpected and sharp production cuts late in the quarter, accompanied by an unfavourable vehicle production mix," said Peter J. Pestillo, Chairman and Chief Executive Officer. "On the positive side, strong new business wins continue and our aggressive program of cutting costs and spending will make us stronger in the future."

Third Quarter sales were $3.7 billion, down $682 million compared with the same period last year. Nearly all the decrease is accounted for by lower Ford revenue. Despite lower industry volumes and unfavourable currency changes, non-Ford revenue for the quarter was down only $12 million from a year ago, as new business growth continued.

The decline in operating earnings compared with a year ago was more than accounted for by sharply lower volume and price reductions provided to the company's customers. The company noted that actions taken to reduce cost and spending mitigated the volume and price reductions substantially. In the Third Quarter, cost reductions totalled about $190 million, offsetting more than 40 percent of the decline.

During the Third Quarter of 2001, Visteon recorded a charge of $21 million after taxes, related to voluntary hourly employee separation programs to improve the performance of its Nashville Glass plant.

Visteon ended the quarter in a solid financial position with almost $1 billion in cash and marketable securities.

Sales for the first nine months of 2001 totalled $13.4 billion, down $1.6 billion from the same period a year ago. The company incurred a loss of $104 million or $0.80 per share for the first nine months of this year. Excluding restructuring costs, the company earned $17 million or $0.13 per share in the first nine months of the year. This compares with net income of $357 million or $2.75 per share for the first nine months of 2000.

So far this year, Visteon has won $1.6 billion in net new business from more than a dozen global automakers in every region of the world. Approximately 75 percent of the wins were with customers other than Ford and 28 percent were outside of North America.

Recent announcements include new business wins with DaimlerChrysler on Mercedes Benz trucks and substantial systems on new vehicles including the Renault Clio, Ford Thunderbird and Ford Fiesta.

"Because of the uncertain industry outlook, it is difficult to forecast what our near-term results will be," said Pestillo. "However, we are leaving no stone unturned in terms of containing costs and spending and putting in place actions that will help us weather a moderate downturn without sacrificing future growth." Visteon expects to provide a Fourth Quarter earnings outlook later in the quarter.

Visteon Corporation is a leading full-service supplier that delivers consumer-driven technology solutions to automotive manufacturers worldwide and through multiple channels within the global automotive aftermarket. Visteon has about 80,000 employees and a global delivery system of more than 160 technical, manufacturing, sales, and service facilities located in 25 countries.

This press release contains forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as "estimated" and "potentially" signify forward-looking statements. Forward- looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in our Current Report on Form 8-K filed with the Securities and Exchange Commission on February 27, 2001. Should any risks and uncertainties develop into actual events, these developments could have material adverse effects on Visteon's business, financial condition and results of operations.

Additional financial detail is available at http://www.visteon.com