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Visteon Becomes Leading Cockpit Supplier in Europe

11 May 1999

Visteon Becomes Leading Cockpit Supplier in Europe and Expands Global Customer Base With Acquisition of Automotive Interior Division of Plastic Omnium

    PARIS, May 11 -- In a move that will make it the market
leader in automotive cockpits in Europe and expand its global customer base,
Visteon Automotive Systems announces its plans to acquire the automotive
interior division of Plastic Omnium.
    Combining Visteon's vehicle systems engineering and electronics expertise
with Plastic Omnium's European automotive interior engineering and
manufacturing capabilities, Visteon will offer vehicle manufacturers in Europe
and throughout the world super-integrated interior systems, including
electronic and climate control systems as well as state-of-the-art consumer-
driven technology, styling and features.
    "This acquisition is a perfect fit for Visteon -- as it marries our global
vehicle engineering and electronics expertise with the European automotive
interior capabilities and customer base of Plastic Omnium," said Visteon
president Craig Muhlhauser.  "Additionally, it immediately increases our
European customer base and drives toward Visteon's vision to become the
world's leading automotive systems supplier."
    "Visteon is the right company to leverage our strong automotive interior
capabilities and develop the innovative and cost-effective systems vehicle
manufacturers are seeking today," said Joel Coque, managing director of the
automotive interior division of Plastic Omnium.  "Our automotive interior
management team has worked hard to build a robust business and is now eager to
take it to new heights."
    The automotive interior business of Plastic Omnium, with 1998 revenues of
FFR 2.8 billion (approximately $450 million USD), has 14 facilities in four
countries: France, Spain, Italy and the UK.
    With the acquisition of the automotive interior division of Plastic
Omnium, Visteon's operations in Europe will now total 23,000 employees in 18
technical and sales centers and 34 manufacturing facilities and $3.1 billion
in annual revenue.  This acquisition results in a 17% increase in Visteon's
European sales.
    "Becoming a recognized market leader for integrated vehicle systems in
Europe is one of Visteon's top priorities," said Steve Delaney, Visteon vice
president, Interior and Exterior Systems.  "This acquisition will enable
Visteon to offer vehicle manufacturers in Europe and throughout the world
cost-effective and innovative integrated interior and full cockpit systems
that deliver ultimate consumer benefits of safety, comfort, entertainment and
convenience."
    The automotive interior business of Plastic Omnium currently serves
Renault and Renault Vehicules Industriels, Peugeot-Citroen, Fiat Group,
Nissan, Honda, Volkswagen/Seat, and others.  This acquisition will increase
Visteon's non-Ford annual revenue in Europe to over 20% of its total European
revenue.
    "Our acquisition of the automotive interior division of Plastic Omnium
enables us to become the European market share leader in cockpits," said Steve
Delaney.  "It also provides us with an outstanding European management team
that is known for their innovation, entrepreneurial style, proven results and
knowledge of the customer."
    The acquisition is expected to be finalized at the end of June 1999.  At
the time of the deal's closure, Visteon's European Interiors Systems will be
headquartered in France and led by Joel Coque.  Mr. Coque will become managing
director of Visteon's Interior Systems, Europe and South America.
    With a global delivery system of more than 100 technical, manufacturing,
sales and service facilities located in 21 countries around the world, Visteon
is leveraging the talents of its 77,000 employees to deliver innovative
consumer-driven solutions to its customers.