Visteon Corporation Completes its Customer-Focused Corporate Structure

Apr 04, 2001, 01:00 ET from Visteon Corporation

    DEARBORN, Mich., April 4 /PRNewswire/ -- Visteon Corp. (NYSE:   VC) today
 implemented actions to streamline its organization and strengthen the company
 for growth, as announced previously.
      (Photo:   http://www.newscom.com/cgi-bin/prnh/20001201/DEF008LOGO )
     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 centralized, 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, organizational 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, counseling and job search
 assistance.  Additionally, those people eligible for early retirement will
 receive those benefits."
     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 worldwide jobs will be eliminated.
     "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
 earlier guidance."
     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, 2001.
     Visteon Corporation is a leading full-service supplier that delivers
 consumer-driven technology solutions to automotive manufacturers worldwide and
 through multiple channels within the global automotive aftermarket.  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.
 
 

SOURCE Visteon Corporation
    DEARBORN, Mich., April 4 /PRNewswire/ -- Visteon Corp. (NYSE:   VC) today
 implemented actions to streamline its organization and strengthen the company
 for growth, as announced previously.
      (Photo:   http://www.newscom.com/cgi-bin/prnh/20001201/DEF008LOGO )
     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 centralized, 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, organizational 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, counseling and job search
 assistance.  Additionally, those people eligible for early retirement will
 receive those benefits."
     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 worldwide jobs will be eliminated.
     "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
 earlier guidance."
     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, 2001.
     Visteon Corporation is a leading full-service supplier that delivers
 consumer-driven technology solutions to automotive manufacturers worldwide and
 through multiple channels within the global automotive aftermarket.  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.
 
 SOURCE  Visteon Corporation