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Visteon Automotive Systems To Continue Expanding

5 August 1998

Visteon Maps Leading Role in Automotive Navigation Industry With Acquisition of Zexel Innovation

    DEARBORN, Mich., Aug. 5 -- Visteon Automotive Systems
announced that it will continue to expand its world-class technological
capabilities with the acquisition of Zexel Corporation's navigation systems
business.
    The acquisition of Zexel Innovation, which is subject to regulatory
approvals and other customary closing conditions, will play a key role in
helping Visteon develop and manufacture the best driver information systems
available.
    Zexel Innovation, a business unit of Zexel USA, has been at the leading
edge of developing in-vehicle navigation systems.  Zexel products have enjoyed
impressive success in the rental car and OEM dealer-installed markets.  Zexel
USA is a wholly owned subsidiary of Zexel Corp. of Japan.
    Visteon will gain the skills of an expert workforce, software technology,
and more than 100 approved or pending navigation system patents with the
purchase.  Visteon will restructure the California-based navigation unit as a
wholly owned subsidiary, called Visteon Technologies.
    "This acquisition represents a tremendous opportunity for Visteon to push
our navigation system capabilities to a new level," said Mike Maloney,
director of Visteon's Multimedia strategic business unit.  "The skills and
technology we are gaining complement our existing telematics radio and ICES
(Information, Communication, Entertainment, Safety and Security) systems.
    "Visteon Technologies will allow us to offer our global customers
completely integrated multimedia solutions," Maloney added.  "Now we will be
able to anticipate customers' needs and interests and fully address them with
leading-edge technology."
    Visteon is already a leader in automotive electronic systems with key
technologies such as ICES, voice-activated control systems, audio systems and
RESCU (Remote Emergency Satellite Cellular Unit), a factory installed Global
Positioning System and cellular phone network that aids drivers in distress.
The addition of Zexel Innovation will allow Visteon to offer customers
additional information technologies such as "turn-by-turn" navigation
capability.
    The acquisition will also help establish Visteon as a leader in providing
navigation technology to vehicle manufacturers, automotive dealers, and the
aftermarket in North America and Europe.
    "Competition between suppliers to provide customers with multimedia
systems is heating up," Maloney said.  "We will continue to pursue business
opportunities, such as Zexel's navigation unit, which make strategic sense.
We are excited about working with a new customer base and look forward to
offering our existing customers even better navigation capabilities."
    The purchase will be complete in the third quarter of the year.  Terms of
the transaction are not disclosed.  Visteon's navigation subsidiary will be
based in Sunnyvale, Calif., in the heart of Silicon Valley.
    Visteon, an enterprise of Ford Motor Company , has 82,000
employees located in 21 countries.  Visteon has 81 plants -- including 32
joint ventures and 49 wholly owned facilities -- and 35 sales offices,
engineering and technical centers.  Visteon's corporate headquarters is in
Dearborn, Mich.