DETROIT -- A North American restructuring is in the works at Visteon Corp., with analysts predicting possible sales and transfers to former parent Ford Motor Co.
Visteon CEO Michael Johnston said the company is pursuing "strategic and structural changes to our business to achieve sustainable and competitive business."
The company wasn't specific about what would be done. But a spokesman said Visteon will take a "decisive" step.
One analyst said the announcement is a recognition by Visteon that it has to do more to cut its high fixed costs.
"Our leadership team views this as a decisive step to address what has been a challenging North American situation," said Jim Fisher, director of corporate communications.
"We view it as a positive to make the business sustainable and competitive by addressing the North American situation." He said the company wasn't ready to delve into specifics.
Cost cuts are going slower than expected while Ford is cutting production, according to a report by UBS Investment Research analyst Rob Hinchliffe. About 72 percent of Visteon's sales are to Ford, he said.
"We infer this to mean management believes its actions to date to fix the company are not working," Hinchliffe said. "It needs to plan that Ford could continue to lose share and needs to find a workable new direction."
Visteon reported net income of $61 million on revenue of $9.8 billion through the first half of the year.
Morgan Stanley analyst Stephen Girsky said that Visteon likely will sell assets and try to shift some work back to Ford. But given the UAW contract and Ford's problems, that won't be easy.
Girsky said: "We would expect any potential restructuring to be complex and extend over a period."