Visteon Glass Operations Returns To Profitability

DEARBORN, Mich. November 26, 2002, The AP reports that with cooperation between the United Auto Workers union and Visteon Corp., the automotive supplier has been able to return its once-struggling glass unit to profitability.

High fixed costs, a bloated work force, diminished pricing power and steep competition produced $234 million in losses at Visteon's glass operations between 1997 and 2001.

But the Dearborn-based company's glass works has generated $18 million in profits despite a 4 percent drop in revenues through the first nine months of 2002.

Faced with a possible shutdown or sale of the unit, the UAW showed flexibility in agreeing to new work rules, lower employment levels and reduced compensation at a key plant in Nashville, Tenn.

"They were looking into the abyss of closure or sale," Bob Marcin, vice president in charge of human resources, told The Detroit News for a Sunday story. "The UAW came to us and said, Let us take a crack at this."'

The concessions saved more than 800 union jobs that appeared headed for extinction.

"With the companies under so much pressure, we have got to do things a little bit differently these days," said Gerald Bantom, a UAW vice president in charge of relations at Visteon and Ford Motor Co. "This certainly won't be the last time we do something like this."