Automotive News staff report
Wilmington, Delaware -- Visteon Corp., a bankrupt maker of auto parts, reached an agreement to continue supplying Ford Motor Co. with parts while it sheds some of its plants, according to court documents.
The agreement would allow Visteon to close or transfer to new owners its money-losing factories without disrupting operations at Ford, its former parent and biggest customer.
Under the deal, which must be approved by a bankruptcy court judge, Visteon would help Ford build up an inventory of parts and transfer to Ford licenses and the right to buy tools used to make the parts, according to court documents filed late on Wednesday.
In return, Ford would pay Visteon $8 million and help with the payment of raw materials and other costs.
The deal covers plants in Lansdale, Pennsylvania; Springfield, Ohio; and Monterrey, Mexico.
Visteon has received court approval for similar agreements with General Motors Co., Chrysler Group llc and Nissan Motor Co.'s North American unit.
Visteonm which uses some polyurethane in its parts, ranks No. 18 on the Automotive News list of the top 100 global suppliers, with sales to automakers of $9100 million in 2008.