Ford to provide financial assistant to Visteon Corp.
Visteon Corp. happens to be the second-biggest auto-parts maker in the United States. However, it is facing financial problems and now former parent Ford has decided to provide assistance worth USD 1.15 Billion to get the controls of its US based operations. This would be the third time in the last 17 months that the company has found itself facing financial difficulties.
The cost this year alone would be in the range of $450 million to $650 million for the US Auto Giant. And to cut costs, ford is expected to trim the workforce of the 24 plants they would be taking over in this latest agreement by around 5000 workers.
The auto part maker as a part of this deal will shed most of their America based operations. They would now be concentrating on their plants at Europe and Asia. Their new partners Ford already provide them with around 70% of the total business and outsourced plants would give them the chance to compete with the competition on the global levels.
The company was spun off from Dearborn in the year 2000 and has yet to see a profitable year in the history of its operations.