Van Buren Township, Michigan – Visteon Corporation, an auto parts supplier spun off from Ford in 2000, has filed for Chapter 11 bankruptcy protection for its U.S. operations and some of its subsidiaries. It is the fourth-largest U.S. auto supplier to seek protection.
No Visteon subsidiaries or joint ventures outside the U.S. are part of the protection filing, the company said in a statement.
The company, which makes electronics, interiors and climate control systems, has not made a profit since its split from Ford in 2000. The automaker accounted for 34 per cent of Visteon’s global business in 2008. In 2005, Ford incorporated several of Visteon’s plants into a subsidiary, Automotive Components Holdings, and assumed responsibility for all unionized Ford employees leased to Visteon.
Visteon said that it expects to fund its operations with its U.S. cash balance, cash flows from operations, and a debtor-in-possession facility. Ford has committed to support debtor-in-possession financing for Visteon’s restructuring efforts and to ensure long-term supply continuation.
Concurrent with its Chapter 11 filing, Visteon has filed certain customary “first day motions” with the court, which requests the authority to continue serving customers, honouring customer programs, paying critical suppliers, and honouring employee obligations.