By Rhoda Miel, Plastics News Staff
Detroit, Michigan -- Visteon Corp. has ended a planned deal that would have sold the bulk of its auto interiors business to a Chinese auto supplier.
Visteon had "thorough discussions" with Shanghai-based Huayu Automotive Systems Co. Ltd to sell most of the interiors business to Huayu's Yanfeng Visteon Automotive Trim Systems Co. Ltd, but announced in a 4 July news release that they could not reach a final agreement and terminated the companies' memorandum of understanding.
"Both parties worked hard to move the agreement forward, but there were a number of items that kept us from doing so," said Don Stebbins, chairman and ceo of Visteon, based in the Detroit suburb of Van Buren Township.
Visteon's interiors business is a global operation with $4 billion in annual sales and 60 facilities in 16 countries. Yanfeng Visteon originally opened as a joint venture with Visteon but has grown independently of the North American supplier. YFV opened its first North American injection moulding unit near Detroit in 2011.
Visteon will now seek "alternative solutions to maximise value creation" while maintaining quality parts production for its customers, the company said.
Meanwhile, American auto components maker Key Safety Systems is expanding in China, opening a new steering wheel factory in Beijing with its joint venture partner, Yanfeng Key Safety Systems (Shanghai).
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