VISTEON
UK subsidiary goes into administration / Closure of three plants
 CEO Donald J. Stebbins (Photo: Visteon) |
US automotive supplier Visteon Corp (Dearborn, Michigan / USA; www.visteon.com) has put UK subsidiary Visteon UK Ltd into administration with the loss of 565 jobs. The appointed administrators, from KPMG, have closed the unit’s three plants, in Basildon, Belfast and Enfield. The plants produced automotive interiors, climate and powertrain components.
Visteon Corp, which was spun off from Ford Motor in 2000, said other operations, including UK subsidiary Visteon Engineering Services Ltd, will not be impacted. “Despite extensive restructuring efforts, the UK plants have continued to incur substantial losses,” said Donald Stebbins, chairman and CEO of Visteon Corp. “Regrettably, having exhausted all options, the Visteon UK Ltd board of directors had no alternative but to file for administration.”
Visteon UK has not been profitable since its incorporation in 2000 and its losses total GBP 669m (EUR 735m), said KPMG. “The entire automotive supply chain has been under pressure for a number of years,” remarked joint administrator Jim Tucker. “In the current economic downturn, car sales have dropped dramatically, which has caused further severe pressure on parts suppliers.”
Visteon UK employed 610 people at its three factories. KMPG said 565 positions have been made redundant and the remaining employees will help wind down the business. Former workers have been protesting at the three sites about the job cuts and what they see as unsatisfactory redundancy packages.
On the same day that Visteon UK filed for bankruptcy protection, parent group Visteon Corp revealed that it has reached agreements with its lenders for temporary waivers on credit facilities after auditors raised doubts about its ability to continue as a “going concern”. In a filing with the US Securities and Exchange Commission (SEC), the US group said it was in discussions with lenders about a restructuring of its capital structure and with major customers about its liquidity needs.
Visteon Corp recorded a USD 328m net loss for the fourth quarter of 2008 and a USD 663m net loss for the full year.
Visteon Corp, which was spun off from Ford Motor in 2000, said other operations, including UK subsidiary Visteon Engineering Services Ltd, will not be impacted. “Despite extensive restructuring efforts, the UK plants have continued to incur substantial losses,” said Donald Stebbins, chairman and CEO of Visteon Corp. “Regrettably, having exhausted all options, the Visteon UK Ltd board of directors had no alternative but to file for administration.”
Visteon UK has not been profitable since its incorporation in 2000 and its losses total GBP 669m (EUR 735m), said KPMG. “The entire automotive supply chain has been under pressure for a number of years,” remarked joint administrator Jim Tucker. “In the current economic downturn, car sales have dropped dramatically, which has caused further severe pressure on parts suppliers.”
Visteon UK employed 610 people at its three factories. KMPG said 565 positions have been made redundant and the remaining employees will help wind down the business. Former workers have been protesting at the three sites about the job cuts and what they see as unsatisfactory redundancy packages.
On the same day that Visteon UK filed for bankruptcy protection, parent group Visteon Corp revealed that it has reached agreements with its lenders for temporary waivers on credit facilities after auditors raised doubts about its ability to continue as a “going concern”. In a filing with the US Securities and Exchange Commission (SEC), the US group said it was in discussions with lenders about a restructuring of its capital structure and with major customers about its liquidity needs.
Visteon Corp recorded a USD 328m net loss for the fourth quarter of 2008 and a USD 663m net loss for the full year.
03.04.2009 Plasteurope.com [213166]
Published on 03.04.2009
German version of this article...