US automotive parts supplier Visteon (Van Buren Township, Michigan; www.visteon.com) is keeping up with its strategy to divest non-core businesses. Following reports that it is to sell the majority of its car interiors business to Yanfeng Visteon Automotive Trim Systems (YFV, Shanghai / China) – see Plasteurope.com of 08.12.2011 – the former Ford subsidiary will now divest its automotive lighting business to Varroc Engineering (Aurangabad / India; www.varrocengg.com). The purchase price is said to be USD 92m, and the transaction is expected to be completed in the third quarter of 2012. "This will allow us to focus on our core climate and electronics businesses," said Visteon's CEO, Donald J. Stebbins.

The business to be sold encompasses a wide range of exterior lighting products, including front and rear lighting systems, auxiliary lamps and key subcomponents. With 2011 revenue of USD 531m, this business has operations in Europe, North America and Asia with 4,200 employees at 26 manufacturing plants and three engineering centres. The sale will also include Visteon’s equity interest in China-based lighting joint venture, Visteon TYC Corporation.

As a result of this transaction, Tarang Jain, managing director of the fast expanding Varroc Group, will significantly increase the company's share of lamps for four-wheel vehicles. Until now, it was only around 25%, with the lion's share of the business coming from lamps and lighting systems for two and three-wheel vehicles, which dominate the Indian market.