Visteon Announces Restructuring Actions

DEARBORN, Mich., Feb. 6 Visteon Corporation yesterday announced a continuation of its restructuring plans and associated charges.

As previously announced, Visteon has a definitive agreement to sell its Restraint Electronics business, leading to the shutdown of Visteon's Markham, Ontario, production by year end. As part of the sale of Visteon Restraint Electronics, approximately 250 employees from Markham and 100 engineers from Dearborn, will be transferred to Autoliv. The remaining 825 employees at Markham will be separated from Visteon as the company moves nearly all of the remaining business to facilities in Mexico.

In addition to the actions at Markham, the company recently released details of its plans to lower research and development costs. As part of this streamlining, about 400 engineering positions worldwide will be eliminated.

``These initiatives are a continuation of Visteon's actions to lower breakeven to be profitable even in downturn conditions,'' said Peter J. Pestillo, Chairman and CEO of Visteon. ``As with our other restructuring actions, these fit our long-term strategy and have a solid payback.''

In total, the restructuring will eliminate about 900 hourly and 700 salaried positions. Visteon expects these actions will result in a First Quarter 2002 non-recurring net charge of as much as $150 million before taxes ($95 million after taxes) with payback in a little more than two years.

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.