Jim Padilla: Ford will help Visteon.
Last week Visteon posted a $188.0 million loss on sales of $4.99 billion for the quarter ended March 31. In the year-ago period, North America's second-largest parts supplier saw a $20.0 million profit on sales of $4.97 billion.
Visteon blamed production cutbacks at Ford and the rising costs of raw materials for the loss.
"Visteon's current poor results only add to its leverage to extract an acceptable settlement from Ford," John Casesa, an analyst for Merrill Lynch, wrote in a report issued after the results.
Casesa expects an agreement before year end.
Visteon of Van Buren Township, Mich., is seeking relief from Ford on a range of costs it inherited when Ford spun it off in 2000. The automaker has agreed to help.
"They're a big part of our supply base, and we need them to be stronger," Ford COO Jim Padilla says. "We'll work with our separate team dealing with that."
Visteon wants to restructure its agreements with Ford to address "legacy issues."
The supplier declined to comment on the talks.
But Casesa says some elements of the agreement might include:
Amy Wilson contributed to this report
You may e-mail Bradford Wernle at [email protected]