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Visteon Automotive Systems: The Facts

25 March 1999

Visteon Automotive Systems: The Facts
    DEARBORN, Mich., March 24 -- The following is a news release
detailing Visteon Automotive Systems and its products and investments:

    Visteon: The Business
    Visteon Automotive Systems is committed to developing a customer-focused
global enterprise -- an enterprise that is relentlessly pursuing innovation
and cutting-edge technologies to make its customers successful.  Visteon is
focused on increasing non-Ford business to 20 percent of sales by 2002,
seeking new business in existing and emerging markets, and creating growth
opportunities for its extensive lineup of aftermarket products.

    *  Visteon Automotive Systems was launched in September 1997 at the
Frankfurt Motor Show.
    *  Visteon's 1998 global sales revenues were $17.8 billion; net income was
$712 million, up 37 percent from 1997.
    *  Visteon has 82,000 employees in 21 countries around the world.
    *  Visteon has 120 manufacturing, engineering, sales and technical
centers.
    *  Visteon has four marketing regions: North America; South America,
Europe, Middle East and Africa; and Asia Pacific.
    *  Visteon has three global sales organizations handling Ford Motor
Company, original equipment manufacturers and Tier One customers, and
aftermarket accounts.
    *  Visteon maintains regional sales offices in Yokohama, Japan; Nagoya,
Japan; Hiroshima, Japan; Southfields, England; Sao Paulo, Brazil; Mexico City,
Mexico; Paris, France; Wolfsburg, Germany; Cologne, Germany; Troy, Michigan;
and Dearborn, Michigan.

    Visteon: The Operation
    Visteon Automotive Systems is organized by systems groups, each with an
extensive portfolio of products and technology designed to deliver fully
integrated systems to auto manufacturers around the world.

    Visteon's Leadership Team includes:
    *  Craig H. Muhlhauser, president
    *  Robert J. Womac, executive vice president, Operations
    *  Richard J. Cavuto, regional director, Visteon South America
    *  Helio Contador, director, Marketing, Service And Sales, South America
    *  Frank J. Croskey, vice president, Climate Control Systems
    *  Stephen W. Delaney, vice president, Interior Systems
    *  David A. Doster, vice president, Ford Motor Company Global Account
    *  Wilfried Janke, director, Manufacturing And Supply, Europe
    *  John Kill, regional director, Europe
    *  Rikuo Miyake, regional director, Asia Pacific
    *  Marcos S. Oliveira, vice president, Electronic Systems
    *  David F. Peace, vice president, Global Aftermarket Operations
    *  Alexander J. Preston, vice president, Supply And Process Leadership
    *  Roger B. Saillant, vice president, Powertrain Control Systems
    *  Raymond H. Schaffart, vice president, Chassis Systems
    *  Kevin Singer, executive director, Global Corporate Communications
    *  Roseann Stevens, vice president, Global OE Accounts
    *  Peter A. Stickler, vice president, Human Resources
    *  Thomas J. Webb, vice president, Finance
    *  Paula Winkler-Doman, vice president, Glass Systems
    *  James W. Wynalek, vice president, Exterior Systems

    Visteon is organized by systems groups:
    *  Chassis Systems offers one of the industry's highest levels of systems
integration with its modular approach to chassis design -- from corner modules
to full frames -- for reduced weight, lower cost, less complexity and improved
quality.  Complete steering and driveline systems also are part of the product
portfolio.
    *  Climate Control Systems focuses on providing optimal passenger comfort
no matter how extreme the weather.  Cabin temperatures are predicted using
advanced Computer Aided Engineering tools and designs can be customized
quickly to provide styling flexibility.
    *  Electronics Systems ensures drivers and passengers are safe, informed
and entertained in today's vehicles.  Its industry-leading technology has led
to breakthroughs in multimedia systems including ICES (Information,
Communication, Entertainment, Safety and Security) Voice-Activated Control
Modules and Vehicle Emergency Messaging System.  Driver information gets a
facelift with Visteon's new projection technology, which employs a new
projection technology that will allow drivers to customize the size, shape,
look and content of the instrumentation.  Other core electronics products
include Adaptive Air Bag Systems and Remote Keyless Entry.
    *  Glass Systems is a full-service supplier, providing automotive glass
design, development, manufacturing and aftermarket support.  The division also
offers integrated float glass production, which delivers high-performing solar
control glazing properties.  Exciting products include deep center-sag
windshields, complex heated and antenna windshields, backlites and sidelites,
tap-sensitive keyless entry systems, heated wiper rest areas and painted-on
logos to promote vehicle brand identity.
    *  Interior/Exterior Systems calls on technology that evaluates the impact
of human factors on its products before designing them.  The Visteon-designed
software accesses a database of more than 50 ergonomic studies and a library
of standard instrument panel subsystems to design the most comfortable,
customer-pleasing interior.  Visteon's Super Integration technology brings
"plug and play" convenience to the cockpit for easy upgrades and customization
of electronic systems.  The super integrated cockpit combines functional and
physical systems to save weight, cost and improve vehicle reliability.  Its
Integrated Front-End System combines individual components of the vehicle's
front end for significant reductions in production cost and complexity.
    *  Powertrain Control Systems offers integrated systems, modules and
components for enhancing powertrain performance, fuel economy and emission
control.  Among its offerings is the industry-leading Integrated Powertrain
Control System that combines electronics, air/fuel and energy management into
one easy-to-assemble "drop in" system.

    Visteon:  The Technologies

    Visteon has a wide array of product lines comprising 27 automotive
systems, 10 modules and 66 component categories.  Leading technologies
include:

    *  Visteon's revolutionary new Super Integration (SI) technology leverages
the expertise of its business to deliver systems solutions for its customers
which result in significant improvements in quality, reliability and space and
major reductions in weight and cost.  One example is the Super Integrated
Cockpit which is an integrated modular cockpit including instrument panel,
package tray and seat systems.  The SI Cockpit employs "flex" technology in
place of wiring harnesses, a magnesium support structure and "plug and play"
convenience for easy upgrades of electronic systems.
    *  ICES will have tomorrow's vehicles talking, listening and thinking.
ICES -- Information, Communication, Entertainment, Safety and Security -- is
an electronics hardware and software architecture that supports the features
contained in its name.  Visteon will leverage many of its proven technologies
in ICES, including Voice Activated Control Systems, Audio, and Vehicle
Emergency Messaging System.
    *  Visteon's Voice Activated Control System allows drivers to talk to
their cars to set key controls without having to turn their attention from the
road.  The voice technology can be used in conjunction with a vehicle's on-
board navigation system and will be instrumental in the development of ICES.
Future applications include an in-vehicle Web browser that will allow drivers
to verbally seek and receive weather and road conditions or stock reports.
    *  Visteon has unveiled "Smart Fun."  Its Rear Seat Entertainment System,
a mobile unit comprised of a 6.4-inch rear-facing flip-up LCD screen, video
cassette player and video game plug and play system, will keep kids
entertained in the backseat while mom and dad drive.  The unit is contained in
a OEM-grade center console, withstands the harsh environment found in
vehicles, and closes up completely to deter theft.
    *  Visteon's new dashboard lets you do instrumentation your way.  Instead
of a conventional instrument cluster, the new dash incorporates a display
panel, akin to a personal computer screen, which fits in the same space as the
vehicle's gauges.  The panel allows the driver to display information the way
he or she prefers by changing the size, color, configuration, position and
even content of the panel.
    *  IFES -- Integrated Front End System -- draws extensively on Visteon's
in-depth knowledge of structural composites, engine cooling, climate control,
wiper/washer systems.  Lighting and electronics to build a completely
integrated front-end package.  IFES delivers weight and cost savings, reduces
complexity and improves the fit and finish of the front end of vehicles.
    *  Visteon has taken the wraps off next generation vehicle lighting.
Fiber optic laser technology adds a scintillating sparkle to rear-end and
center high mounted lamps while shrinking light assemblies down from over four
to just one-half inches wide.  The taillamps will be made of transparent
plastic and take on the vehicle body color when they are off.  Visteon's
Faceted Projector High Intensity Discharge headlamps provide better glare
control and offer drivers up to 250 percent more light on the road compared
with halogen light sources.
    *  Visteon's NavMate(TM) navigation system offers drivers turn-by-turn
route guidance, color screen display, turn icons and voice commands.
Destinations can be selected by entering a specific location through the
display controls and an on-screen menu.  The vehicle's position is identified
using a global positioning system receiver.
    *  An integrated air-fuel module incorporates the functions of more than
50 individual components into 15 components, reducing costs by 25 percent and
weight by 28 percent.

    Visteon: The Acquisitions and Partnerships
    In supporting its commitment to customer service and success, Visteon is
actively pursuing opportunities that allow it to leverage its resources, grow
its technologies, and expand its product offerings.  To that end, Visteon has
undertaken the following acquisitions and partnerships:

    *  Visteon has acquired Zexel Innovation, a navigation systems development
business in Sunnyvale, Calif.  The unit, renamed Visteon Technologies, will
help Visteon achieve world-class navigation systems capability with its highly
skilled workforce, advanced technologies, and pending and approved technology
patents.
    *  Visteon acquired PABA, Incorporated, a manufacturer and distributor of
aftermarket climate control products in North America in December.  Renamed
Visteon Climate Control Systems, Limited, the organization provides Visteon
with a means to supply replacement radiators, condensers and heater parts for
virtually every vehicle make and model driven in North America.
    *  Visteon acquired two automotive component companies in Poland.  The
plants, renamed Visteon Poland SA and Visteon ZEM SA, will help Visteon pursue
new business opportunities in Central and Eastern Europe.
    *  Visteon formed a 50:50 partnership with Pi Technology LTD, a leading
automotive electronics and software engineering company, to further enhance
its ability to develop advanced vehicle technologies.
    *  Visteon has formed a strategic alliance with Microsoft Corp. and Intel
Corp. to develop a computing platform for vehicles.  The platform is based on
the Microsoft Windows CE operating system and Intel Architecture
microprocessors and supports the development of ICES.
    *  Visteon and Nintendo of America, Inc. have established a partnership to
market and promote Visteon's Rear Seat Entertainment System with Nintendo game
software.
    *  Visteon teamed up with De Tomaso Automobiles, Ltd., to share joint
development of new technologies for racing and consumer vehicle applications.
    *  Visteon partnered with a number of vendors, including SAP, SDRC,
Netscape, Aspect Development and i2 Technologies to build a cutting-edge,
streamlined information system that will integrate its business operations.
    *  Visteon chose Intelligent Information Incorporated (III) as its
provider of real-time, personalized information services for ICES.
    *  Visteon increased its equity in Halla Climate Control Corp. in South
Korea to grow its automotive climate control business in that market.
    *  Visteon has joined forces with AlliedSignal Power Systems Inc to
design, develop and manufacture AlliedSignal's TurboGenerator(TM), a portable
power unit.  The unit will use Visteon's Power Electronic Control System and
related electronic controls.

    Visteon: The Awards
    Visteon Automotive Systems already is being recognized around the world
for outstanding product quality, reliability and cost competitiveness,
innovative solutions to customer needs, and corporate stewardship of the
environment.
    *  Visteon seats and audio head units won two top quality awards from J.D.
Power and Associates in 1997.  Visteon was ranked the highest quality supplier
of each product, according to customer surveys completed by J.D. Power and
Associates.
    *  Visteon contributed to two automotive interiors that won Inside
Automotive International's 1998 "Interiors of the Year" award.
    *  Visteon engineers won three of 14 Henry Ford Technology Awards from
Ford Motor Company in 1998.  They also were team members on two other projects
that won recognition in this competition.  In 1997, Visteon engineers won
eight of 15 Henry Ford Technology Awards.
    *  Visteon technology helped Ford Motor Company win two Society of
Plastics Engineers awards in 1998.
        *  Visteon's closed loop Thermoplastic Olefins recycling program
           helped Ford win the SPE's environmental award.  The program will
           result in the reuse of approximately 60,000 pounds of scrap TPO per
           week by the end of 1998.  Equally significant, the closed loop
           program is a precursor to post-consumer recycling.
        *  Visteon's integrated air induction system helped Ford win the
           Powertrain category award.  This revolutionary system integrates
           the functions of engine air filtration, acoustic silencing, battery
           support, battery insulation, active battery cooling and vibration
           dampening.  Induction air is routed around the battery to provide
           active cooling when the engine is running and insulation when the
           engine is shut off.
    *  Visteon also helped Ford win four SPE awards in 1997, including:
        *  The carpet to car parts process of recycling large quantities of
           used commercial carpet into vehicle engine air cleaner housings won
           the Grand Award Category and the Environmental Award Category.
        *  Development of conductively modified thermoplastic olefins for
           enhanced painting efficiency program won the Materials Award
           Category.
        *  The lightest bumper fascia in the minivan segment, made from the
           next generation of thermoplastic olefin plastics, was introduced in
           1997 and won the Body Exterior Category.
    *  Visteon plants throughout the world are receiving recognition for
development of wildlife sanctuary areas on their plant grounds.
    *  All of Visteon's 50 wholly owned plants around the world are compliant
with the industry standard for quality, QS9000.
    *  Visteon's Coclisa and Altec facilities in Mexico each won a Clean
Industry Award in September 1998 from Mexico's federal environmental
protection agency.
    *  Forty seven Visteon plants around the world have completed
certification for ISO 14001, the standard for environmental management, which
provides the framework for integrating environmental responsibility into
everyday business.  Visteon expects all of its eligible facilities to be ISO
14001 compliant by the close of 1999.