Visteon is exploring the sale of its axle business and part of its electronics business, sources close to the talks say.
Potential bidders for the axle operation include Axle Alliance, a unit of DaimlerChrysler that makes heavy-truck axles, and supplier Magna International of Canada.
Siemens VDO Automotive and Faurecia are interested in Visteons interior electronics products, sources say.
Visteon needs cash. It has lost more than $3.2 billion (E2.42 billion) since Ford Motor Co. spun it off five years ago.
To get that money, sources say Visteon is willing to consider the sale of operations that it had previously labeled core businesses.
Since December, Visteon CEO Michael Johnston has met privately with several potential buyers, sources say. Visteon denies this.
Company spokesman Jim Fisher declined to confirm which businesses Visteon is willing to sell. There is a lot of wild speculation about a lot of things, he said.
Visteon is Ford dependent
The companys core businesses include interiors, climate control and electronics, Fisher says. They are strong growth areas for the company, and most of Visteons new non-Ford business is in those areas, he said. We would not call them core products if we felt they were for sale.
But light-vehicle axles are not on Visteons list of core products. The axle business is one of Visteons major headaches. In 2000, senior Visteon executives proposed a $1.2 billion capital infusion to upgrade the axle business, but nothing came of it, says a former insider.
Visteon remains dependent on former parent Ford for 67 percent of its revenue.
But in the US, Ford is struggling to maintain market share and has cut its first-quarter plans for vehicle production 8 percent compared with the year-ago period. That will have a major impact on Visteons revenues.