DETROIT - Visteon Corp. will cut costs more than 6 percent this year, thanks to a program dedicated to the task, said Michael Johnston, the company's COO.
The program, known as SAVE - short for Suppliers and Visteon Excel - allowed Visteon to cut costs about 6 percent last year from $7 billion of its total purchasing bill. An additional $3 billion in purchasing was directed by Visteon's automaker customers and was not subject to the savings initiative. From May 2002, when SAVE began, through June 2003, Visteon cut costs about 15 percent.
In SAVE, the Tier 1 company shares cost savings with its suppliers, which take those costs out of parts through design, material or process tweaks.