Visteon Corporation recently announced the proposed sale of its Swansea, United Kingdom operation to Linamar Corporation, a Canadian-based auto parts manufacturer. The proposed sale of this facility, which is the company's largest operation in the U.K., will be a significant milestone in Visteon's plan to address non-core facilities and improve its financial performance. "This transaction will represent another major step to achieve Visteon's profit improvement plan, while continuing to strengthen our global engineering and manufacturing footprint," says Donald J. Stebbins, Visteon president and chief operating officer. "We are committed to working with our customers, employees, unions and Linamar to reach final agreements and bring the transaction to closure as quickly as possible." This action, which will complete the company's divestiture of its chassis business, builds on the progress already made in addressing its performance in the U.K. Visteon previously exited its brake business, successfully transferred unprofitable business to lower cost countries, and significantly reduced its salaried workforce in the U.K. As part of the proposed transaction, which is expected to be completed by year end, Visteon will transfer the manufacturing facility and associated assets, as well as contracts and certain intellectual property rights. The 400 employees currently employed in the facility are also expected to transfer to the new owner. Other details of the proposal were not disclosed. "When finalized, this proposed transaction will provide a viable alternative to closure for the Swansea facility, while enabling Visteon to achieve its business objectives," says Steve Gawne, managing director of Visteon's U.K. operations. "The Swansea plant will be a strong strategic fit within Linamar's expanding driveline division." This proposed transaction also builds on Visteon's three-year improvement plan that was announced in 2006. As part of that plan, the company is addressing 30 underperforming and non-strategic operations, improving its base operations in efficiency and taking a number of steps to grow the business. The proposed sale of Swansea is the 20th action announced. The restructuring actions are expected to generate annual savings of approximately $400 million. The company has also achieved a number of other significant milestones, including addressing two-thirds of its restructuring items and significantly shifting its manufacturing and engineering footprints to cost-competitive countries. Nearly 60 percent of Visteon's hourly manufacturing personnel are now in lower cost countries, compared with 48 percent at the end of 2005. By 2009, Visteon plans to have 75 percent of its manufacturing personnel and half of its engineering workforce in cost-competitive countries. The proposed sale, which supports Visteon's three-year improvement plan, is subject to due diligence, certain third party agreements, definitive documentation, anti-trust clearance and corporate approvals. For more information about the Visteon Corporation, visit the company's Web site. | 
