DETROIT -- Struggling auto-parts supplier Visteon Corp. said on Thursday it plans to cut retirement health-care and life insurance benefits for thousands of U.S. salaried workers to lower operating costs.
"This is part of an ongoing effort to make Visteon competitive and profitable," Visteon spokesman Jim Fisher said.
Salaried workers who retire on or after June 1, 2007, will no longer be eligible for company health-care coverage, Fisher said.
The former subsidiary of Ford Motor Co. will also end its life insurance program for all white-collar workers who retire after the cut-off date, he added.
Fisher declined to say how much money Visteon will save with the move, but he added that additional benefit cuts for salaried employees were under review.
The changes in benefits affect about 6,500 white-collar workers at Visteon, which is currently undergoing a massive restructuring program.
Visteon and other auto-parts suppliers have been hurt in recent quarters by production cuts at General Motors and Ford Motor Co. in North America.
Under a bail-out deal with Ford, Visteon plans to unload unprofitable plants and 17,400 highly paid employees to a holding company controlled by the automaker.
The agreement would transform Visteon into a company with annual revenue of $11.4 billion, down from $18.7 billion in 2004.