Dearborn, Michigan (ots-PRNewswire) - Visteon Corp. (NYSE: VC)
today implemented actions to streamline its organisation and
strengthen the company for growth, as announced previously.
Visteon's new corporate structure is focused on customer teams.
These teams have been formed in two regions -- North America/Asia and
Europe/South America -- and will be located close to their customers.
They are responsible for their customers' marketing, sales and
program management. Support functions will be centralised, including
manufacturing, product development, materials management, information
technology, and staff functions.
The new structure will have both customer and financial benefits.
On the customer side, the new structure will provide a central point
of contact that should quicken response and decision time. "This
should improve our ability to win and retain new business," said
Michael Johnston, Visteon's President and Chief Operating Officer.
As part of the new structure, organisational layers have been
removed and staff functions streamlined. About 950 U.S. staff jobs,
representing about 12 percent of Visteon's U.S. salaried workforce,
have been eliminated -- effective immediately. "While we will lose
some talented employees," said Peter J. Pestillo, Visteon's Chairman
and Chief Executive Officer, "we believe this is the right path to
support the future success of Visteon and its people. We will offer
financial assistance, counselling and job search assistance.
Additionally, those people eligible for early retirement will receive
Today's action builds on initiatives taken in December to cut
overtime, travel and discretionary spending, and freeze hiring.
"Those actions already are having an impact on the bottom line," said
Johnston, "and are contributing to our on-going cost reduction
efforts." Also on-going are strategic initiatives to improve the
quality of our product portfolio and manufacturing initiatives to
improve quality and institute lean processes.
The next step will be to complete the review of operations outside
the U.S., as well as plant structure within the U.S. The company
expects structuring actions for these remaining activities to be
largely complete by the end of the second quarter 2001. Combined with
the actions implemented today, about 1,800 world-wide jobs will be
"The actions we're announcing today, and the additional actions
underway that will be completed later in the quarter, will result in
a one-time charge estimated at $135 million after taxes," said Dan
Coulson, Visteon's Executive Vice President and Chief Financial
Officer. "This charge will be reflected in our second quarter results
and these costs will be recovered in a little more than a year. Based
on the progress that has been made, we're expecting first quarter
earnings to be in the $20 - $30 million range, in line with our
Members of management will be available to answer questions on
these initiatives during Visteon's first quarter financial results
conference call, which is scheduled for 10 a.m. (EDT), April 20,
Visteon Corporation is a leading full-service supplier that
delivers consumer-driven technology solutions to automotive
manufacturers world-wide and through multiple channels within the
global automotive after-market. Visteon has 82,000 employees and a
global delivery system of more than 130 technical, manufacturing,
sales, and service facilities located in 23 countries.
This press release contains forward-looking statements made
pursuant to the Private Securities Litigation Reform Act of 1995.
Words such as "estimated" and "potentially" signify forward-looking
statements. Forward- looking statements are not guarantees of future
results and conditions but rather are subject to various risks and
uncertainties, some of which are and will be identified as "Risk
Factors" in Visteon's SEC filings. See "Risk Factors" section of
Visteon's prospectus dated June 13, 2000 as filed with the SEC on
June 14, 2000. Should any risks and uncertainties develop into actual
events, these developments could have material adverse effects on
Visteon's business, financial condition and results of operations.
Note to editors: Visteon news releases, photographs and product
specification details are available at www.visteon.com
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