- May 28, 2009
BREAKING: Visteon reportedly files for Chapter 11 bankruptcy
Visteon's struggles have been well documented, with its ballooning debt, falling sales (down by more than 50% in the first quarter of 2009 alone) resulting in a $681 million dollar loss last year. In fact, back in 2005, Visteon had to ask Ford to step in as part of an agreement that saw the Blue Oval agree to take ownership of all of the supplier's hourly employees who were United Auto Workers members, as well as most of the company's North American facilities.
Despite no longer technically being part of Ford, the Blue Oval is still Visteon's largest customer (accounting for around 31% of its sales last quarter), and according to AN, Visteon says that Ford is still committed to help the company with debtor-in-possession financing and future parts orders while the supplier undergoes restructuring.
[Source: Automotive News (subs. req.)| Image: Jonathan Ferrey/Getty]