Visteon to Invest $80 Million in New Compressor Facility in China

SHANGHAI, China, Aug. 31, 2004 -- Visteon Corporation -- a leading automotive supplier in the Asia Pacific automotive market -- announced today that it will build a new $80 million compressor facility in Dalian, an important industrial center in northeastern China. The compressor facility, which will produce air conditioning compressors and sub- components for a variety of automakers, is a joint venture between Visteon and Halla Climate Control Dalian Company, Limited.

"We are pleased to announce this new facility and our continued leadership role in producing climate products in Asia Pacific for both local and global delivery," said Bob Pallash, Visteon's vice president Asia Pacific Operations. "This new facility, along with our other climate operations in China and Asia Pacific, provides Visteon with a solid platform for future growth and ongoing viability."

The investment will occur in four phases with the construction of a greenfield facility capable of producing most advanced and environmentally friendly compressors. The new facility will be about 25,000-square meters in size and will employ nearly 600 individuals once it is fully operational by mid-2005.

Most of the compressors will be supplied to major automakers in China and the Asia Pacific region.

"Among Visteon's greatest strengths in the Asia Pacific region are the relationships we've built with our joint venture partners," said Pallash. "These relationships have enabled us to access new markets and customers and one of our strongest and most significant relationships is with Halla. Halla Climate Control is a market leader in Korea and a source for operational excellence in Asia Pacific. The facility and its staff are outstanding in the way they approach design, development and manufacturing. We intend to leverage their expertise and knowledge of the product and market to make this new facility a success."

For more than 10 years, Visteon has been growing its presence in Asia Pacific. Today, Visteon operates more than 20 manufacturing facilities in the region, located throughout China, Japan, Korea, Thailand, the Philippines and India, serving a variety of global and regional automakers. Visteon is a leader in delivering climate, interior and electronics component and systems to customers in what has become the fastest-growing automotive market in the world.