Visteon Corp.s former interiors and lighting president has been named CEO of supplier Key Plastics LLC.
After leaving his post at Visteon last Friday, Terrence Gohl will take the reins at Key Plastics where he will oversee the companys global operations and strategic direction as CEO and a board member, according to a Key Plastics statement released late Tuesday.
Key Plastics, based in suburban Detroit, emerged from a pre-packaged Chapter 11 bankruptcy reorganization in February -- the companys second Chapter 11 reorganization since 2000.
Key Plastics board Chairman Gene Davis applauded Gohls appointment and praised his experience and leadership.
We are confident that Terry will successfully lead Key Plastics into this new era of growth and value creation for our customers, suppliers and shareholders, Davis said in a statement.
A U.S. Bankruptcy Court judge in Delaware and company creditors approved Key Plastics reorganization plan Feb. 16, which allowed the company to convert $115 million in senior secured debt into equity and enter into a new $25 million line of credit.
Minnesota-based investment bank Wayzata Investment Partners LLC also funded a $20 million equity investment in Key Plastics, and is the suppliers controlling shareholder. Wayzata held the majority of Key Plastics bonds prior to the suppliers bankruptcy filing.
The company makes exterior and interior door handle assemblies, interior decorative and mechanical assemblies and underhood molded products.
Several stops in the supply chain
Gohl, 47, joined Visteon in August 2005 as the parts supplier was on the verge of winning one of its biggest interiors coups of the decade: a contract to design and supply the door trim and cockpit of Chrysler LLC's high-profile Dodge Ram pickup truck.
Visteon began supplying the interior on the redesigned 2009 Ram last year. It won the contract away from Lear Corp.
Gohl worked for Lear for 10 years before joining Tower Automotive Inc. as senior vice president of North American operations. That was his last stop before joining Visteon.
Visteon spokesman Jim Fisher said Gohl's responsibilities are being split on an interim basis among other executives in the interiors unit.
No long-term plans for his previous role have been announced, Fisher said.
A source at Visteon said the supplier is heavily reliant on cash-strapped Chrysler for its interiors sales. The company also is working on interior products for the next-generation Jeep Cherokee scheduled for launch in the 2010 model year, the source said.
Fisher said he did not know about the level of Visteon interiors' dependence on Chrysler. He said Chrysler accounts for roughly 5 percent of Visteon's total global sales.
Interiors represented about $2.7 billion of Visteon's global sales in 2008. Electronics accounted for $3.2 billion and climate-control systems about $2.9 billion, according to the company's annual report.
Visteon posted a net loss of $663 million in 2008 on sales of $9.54 billion. The company has never posted an annual profit since being spun off by Ford Motor Co. in 2000.
Visteon itself is the subject of bankruptcy rumors. Its auditors have questioned the company's viability in light of massive North American vehicle cuts this year.
Visteon UK Ltd., the supplier's three-factory manufacturing operation in the United Kingdom, is in the British version of bankruptcy.