Ford and Visteon Plants
Date: Mar 18, 2005
Contributor: Tyrone Ovellette
Ford Negotiates Purchasing Some Visteon Plants
Nearly five years ago, Ford broke its ties with Visteon, hoping the company could survive on its own.
Since the breakup, Ford has admitted that Visteon can’t go on without massive infusions of cash and support.
Ford and Visteon both said they are in serious negotiations where any number of scenarios would have Ford prop up Visteon.
The most likely scenario is Ford taking back ownership of at least three Visteon plants and the nearly 9,000 workers in them.
The deal would get Visteon back on its feet quickly by helping Visteon focus more on profitable parts.
Ford broke off from Visteon in April 2000.
Since then, Visteon has been losing large amounts of money, but at the same time, the struggling company built a palatial, multimillion-dollar headquarters in Van Buren Township.
In the end, it is likely Ford would end up selling the plants it takes in to other suppliers.
Line workers would benefit in the short term by going to work for the much stronger Ford company, but overall, it’s a drag on Ford’s bottom line.
In the short term, it's good news for line workers who would go to work for the much stronger Ford.
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