Shanghai, China -- US automotive components supplier Visteon Corp. has agreed to sell its 50 percent stake in Chinese joint venture Yanfeng Visteon Automotive Trim Systems Co. -- which makes foam in place automotive seating and other interior components -- to partner Huayu Automotive Systems Co. for $1.2 billion
Visteon will separately purchase majority control of the joint venture's automotive electronics unit, known as Yanfeng Visteon Automotive Electronics Co., for $68 million, the company said Tuesday.
"These transactions support our focus on our core climate and electronics businesses and will bring significant benefits to Visteon, our customers and our shareholders," said company CEO Timothy Leuliette in a statement.
Under the deal, Visteon will keep its wholly owned interior component business, which it had tried to sell to Huayu Automotive last year as part of a package deal.
That deal fell through last July, presumably because Huayu did not want the interiors operation's assets in Europe, where sales are stagnant.
In a Tuesday statement, Visteon spokesman Jim Fisher confirmed that Visteon still wants to sell its remaining interiors operation. "Our stated goal is to divest that business," Fisher said.
By contrast, Visteon now considers its electronics operation to be a 'core' business along with its profitable climate control operation, Fisher noted.
This story first appeared in .