DETROIT, June 25 (Reuters) - Auto parts supplier Visteon Corp. said on Tuesday it had settled a $50 million pricing dispute with former parent and largest customer Ford Motor Co. over parts supplied in Europe.
Visteon said the settlement called for the company to give price cuts to Ford for parts delivered in 2001 and 2002. Visteon said the reductions were in line with its reserves and would not affect its financial outlook.
Terms of the deal were not disclosed.
As part of the deal that spun Visteon off from Ford in 2000, Ford was given the right to price cuts from Visteon for 2001 through 2003 that matched those it received from other suppliers. In 2000, the cut was 3.5 percent.
The two companies also fought over the size of the cut for North American business, but that dispute was settled in March.
Ford accounts for about 80 percent of Visteon's revenues, estimated at about $18 billion this year.