About 1,200 U.S. salaried employees of Visteon Corp. will see their salaries cut between 2 and 10 percent beginning Feb. 1 as the supplier continues to cut costs.
The cuts apply only for employees making more than $75,000 a year. The lions share of Visteons employees will see a 2 percent reduction, but salaries for top executives and directors will be cut between 7.5 and 10 percent, said Jim Fisher, Visteon director of corporate communications.
The salary cuts will remain in place until at least June 30, when the company plans to reassess its needs, Fisher said.
A regulatory document filed late yesterday with the U.S. Securities and Exchange Commission said Visteon CEO Donald Stebbins will take a 10 percent salary cut, while CFO William Quigley III and General Counsel John Donofrio will see a 7.5 percent cut.
Fisher said Visteons roughly 2,000 suburban Detroit salaried employees forced to work a four-day workweek and take a related 20 percent salary cut in January will return to a normal five-day workweek and see their salaries returned to normal levels Feb. 1, unless they make more than $75,000, making them eligible for the new cuts.
Visteon has taken many cost-cutting steps in recent months as it expects its full-year 2008 revenue to be down almost 20 percent from 2007.
The supplier said Jan. 13 it suspended matching 401(k) contributions and employee salary increases for 2009 while cutting other employee benefit programs and hiring fewer employees.
Those cuts came after Visteon said in October it planned to cut 800 salaried employees globally. Those cuts were expected to be completed in the first quarter and save the company about $60 million annually.
Visteon said Jan. 13 it expected to post revenue of $9.1 billion for 2008, about $400 million less than an earlier forecast. The revenue estimate represents a would-be drop of about $2.2 billion, or 19.3 percent, compared with the companys $11.27 billion of revenue in 2007.
The company also said it expects fourth-quarter 2008 revenue to be $1.55 billion, which would be down $1.3 billion or more than 45 percent from the same period in 2007.
At the end of 2008, Visteon had $1.18 billion in cash, including $75 million drawn from its main U.S. credit line. It also had $2.76 billion in debt, according to its preliminary 2008 financial statement issued Jan. 13.
Visteon, which makes interiors, lighting systems and climate controls, has not posted an annual profit since it spun off from Ford Motor Co. in 2000. The supplier ranks No. 16 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $10.72 billion in 2007.