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Volume Reductions Impact Visteon's Q4 Earnings Estimate    

6 December 2000

Volume Reductions Impact Visteon's Fourth Quarter Earnings Estimate    

    DEARBORN, Mich., Dec. 5 Visteon Corporation ,
today announced that Fourth Quarter earnings are anticipated to be lower than
analysts' expectations.  Visteon is reducing its internal estimate of earnings
to about 35 cents per share, which includes a previously announced gain for
the sale of its interest in Conix.  This decline reflects primarily reductions
in production announced by Ford Motor Company.
    In addition, Visteon will record a non-cash impairment write-down of
approximately $140 million after taxes ($1.08 per share) in the Fourth Quarter
to reduce the net book value of the assets associated with the Glass Segment.
The write-down reflects revised estimates of the fair value of the assets
following the end of discussions with Pilkington plc.  Continuing pressures on
cost and prices in the sector make it unlikely that Visteon will recover fully
the recorded value of assets associated with this business.  Visteon remains
committed to finding solutions for the Glass Segment during the coming months.
    The combined effect of the lower earnings estimate and the non-cash
impairment write-down will result in a net loss for the Fourth Quarter.
    Visteon is taking a number of aggressive actions to address the softening
of U.S. industry volumes.  These include:
    *  A reduction in capital spending
    *  An immediate hiring freeze
    *  Eliminating most production overtime
    *  And substantial reductions in all discretionary spending.

    "These actions can have an immediate effect on the bottom line," said
Peter J. Pestillo, Chairman and CEO, Visteon Corporation.  "In addition, I've
asked Mike Johnston, Visteon's President, to undertake a 30-day functional
review of worldwide operations with a goal of reducing structure, eliminating
redundancies and streamlining processes."