DETROIT -- Visteon Corp. said Thursday that it plans to cut 500 salaried positions in the United States and Europe by the middle of next year.
The cuts are part of the auto suppliers ongoing restructuring effort that targets operations in what Visteon refers to as high-cost countries and are also necessary because Visteon is shrinking as it sells or closes some of its plants.
We have informed our employees that as part of our continuing effort to improve the companys performance, we are taking a number of actions, including the elimination of 500 salaried positions globally, said Kimberley Goode, Visteons vice president of corporate communications.
We are beginning the process now with the expectation that all positions will be identified and addressed by mid-2008.
The majority of the cuts will occur in areas such as human resources, finance, legal and accounting and will include positions at the companys headquarters in suburban Detroit.
Visteon supplies electronics, climate control and interiors products to the auto industry.
We continually look to resize the business to meet our current needs. And as we have restructured operations and closed or sold facilities, we want to reduce our overall cost structure, Goode said.
During the third quarter, Visteon completed the sale of a powertrain plant in Chennai, India, for $30 million. The Chennai operation generates annual sales of about $60 million and employed about 800.
Visteon is also closing Indiana plants in Connersville and Bedford. The company recently reached an agreement with the union local at Bedford to cease operations by mid-2008 and plans to cease production at Connersville in December of this year.
Last month, Visteon said it reached an agreement to sell its plant in Swansea, Wales. That sale is expected to be complete by the end of this year.
On Wednesday, Visteon reported improved third-quarter financial results, but it continues to lose money.
For the quarter that ended Sept. 30, Visteon reported a net loss of $109 million on revenue of $2.41 billion. For the same period last year, the company lost $177 million on revenue of $2.45 billion.
Still, the restructuring program eventually will lead Visteon to profitability, Michael Johnston, Visteons chairman and CEO, said during a conference call with analysts Wednesday.
The progress we are making, as well as the actions we will execute in 2008, are laying the foundation for Visteon to be free-cash-flow-positive in 2009, Johnston said in a statement Wednesday.
Visteon ranks No. 13 on the Automotive News list of the top 100 global suppliers with estimated worldwide original-equipment automotive parts sales of $10.87 billion in 2006.