Banner
Falorni Tech Glass Melting Technology
Filtraglass

Visteon settles price dispute with Ford

Visteon Corp. and Ford Motor Co. settled a US$ 50 million European pricing dispute at the end of June after months of negotiations. Visteon wouldn“t disclose terms but did say it would give its bigge…

Visteon Corp. and Ford Motor Co. settled a US$ 50 million European pricing dispute at the end of June after months of negotiations. Visteon wouldn“t disclose terms but did say it would give its biggest customer productivity price reductions for 2001 and 2002. Those reductions are in line with previous reserves and won“t damage the company“s financial outlook, Visteon said. It was a result similar to the settlement of a US$ 125 million pricing spat in North America settled in March. Those price givebacks were covered by previous reserves. The supplier and Ford also agreed to end the controversial marketbasket pricing arrangement, in which an index of competitive products was used as a benchmark for Visteon price cuts. The resolutions in North America and Europe put Visteon on a level playing field with other parts makers when it comes to supplying former parent Ford. Weaning off Ford, Visteon remains ontarget to meet or exceed last year“s non-Ford business wins of US$ 1.2 billion. The company won US$ 770 million in new non-Ford business through the end of May. The biggest successes are in the interiors business, with nearly half of those wins in cockpits, instrument panels and clusters, he said. Ford business wins are running even with last year“s pace. Visteon is stepping away from some contracts that don“t meet profit margin requirements or seeking price increases, he said. The Dearborn, Michigan, US, automaker represented 82% of Visteon“s 2001 sales. Prepared for acquisitions After months of restructuring, the US$ 18 billion supplier also may be ready to investigate acquisitions more seriously, Johnston said. Many parts businesses are available. With the industry“s recent difficulties, as much as 40% may be in play, Visteon Chairman Peter Pestillo suggested, but any acquisition must add to earnings and enhance the customer, geographic or product mix, executives said. Today, Visteon is better positioned with a more sound strategy, vision and culture, he added.

Sign up for free to the glassOnline.com daily newsletter

Subscribe now to our daily newsletter for full coverage of everything you need to know about the world glass industry!

We don't send spam! Read our Privacy Policy for more information.

Share this article
Related news