VAN BUREN TOWNSHIP, Mich. — Visteon and Huayu Automotive Systems Co. Ltd. (HASCO) have signed a non-binding memorandum of understanding (MOU) that would potentially combine the majority of Visteon’s global interiors business with the two companies’ existing China joint venture, Yanfeng Visteon Automotive Trim Systems Co. Ltd. (YFV).
The MOU sets forth certain of the basic terms of the proposed transaction. Definitive agreements for the proposed sale, which would be subject to regulatory and other approvals, are expected to be signed in early 2012. Other terms were not disclosed.
The company says the transaction would further broaden the strategic partnership between Visteon and HASCO and is expected to greatly enhance YFV’s global manufacturing and engineering footprint. The transaction, once completed, would result in a leading global interiors company within YFV with estimated annual revenue of approximately $4 billion, serving more than 30 customers from more than 60 facilities in 16 countries.
"Visteon is very pleased that the signing of the MOU takes our longstanding joint venture with HASCO and SAIC into a global partnership fully enabled to support our key customers around the world," said Donald Stebbins, Visteon chairman, CEO and president.
"The signing of this MOU represents an important step toward the fulfillment of our strategy to create a leading global interiors company," said Ma Zhengang, Yanfeng Visteon standing deputy general manager. "Our technical and manufacturing footprint will give us unmatched capability to support all our customers in key growth and emerging markets."
