Visteon sells plant, cuts 1,600 jobs
As it seeks to hone its core competencies, Visteon Corp. sells its Restraint Electronics plant in Markham, Ont., to Autoliv Inc. for $25 million as part of a restructuring effort that will result in 1,600 job cuts and a first-quarter charge of up to $150 million for the Dearborn, MI, supplier. Autoliv will continue to produce restraint electronics at Markham and will retain 250 employees there, while
As it seeks to hone its core competencies, Visteon Corp. sells its Restraint Electronics plant in Markham, Ont., to Autoliv Inc. for $25 million as part of a restructuring effort that will result in 1,600 job cuts and a first-quarter charge of up to $150 million for the Dearborn, MI, supplier.
Autoliv will continue to produce restraint electronics at Markham and will retain 250 employees there, while 100 engineers in Dearborn will transfer to Autoliv. Markham's remaining 825 employees will lose their jobs as Visteon moves nearly all remaining business to Mexico.
Total first-quarter will eliminate about 900 hourly and 700 salaried positions, including 400 engineering jobs worldwide.
Visteon also produces occupant-restraint electronics in Palmela, Portugal, and Autoliv will move that production to other Autoliv facilities in Europe over the next several months. Visteon says it is evaluating “new business opportunities to better utilize” Palmela.
The sale includes Visteon's North American and European order book of approximately $150 million in annual sales to its former parent, Ford Motor Co.
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