Visteon Scores Big Win with Honda - aftermarketNews

Visteon Scores Big Win with Honda

Visteon Corp. has landed a lucrative -- and potentially more lucrative -- contract to supply instrument panel modules to Honda Motor Co. in North America . Visteon, which was forced to seek a financial bailout from Ford Motor Co. this year, is moving deeper into business dealings with Honda, an automaker renowned for its stern scrutiny of suppliers.

Automotive News

VAN BUREN TOWNSHIP, MI — Visteon Corp. has landed a lucrative — and potentially more lucrative — contract to supply instrument panel modules to Honda Motor Co. in North America .

Visteon, which was forced to seek a financial bailout from Ford Motor Co. this year, is moving deeper into business dealings with Honda, an automaker renowned for its stern scrutiny of suppliers.

Visteon will begin supplying the next-generation Acura MDX with the modules in 2007 in a contract that one industry forecasting firm estimates to be worth $30 million a year.

The award also puts Visteon into an auspicious position: The MDX SUV platform is shared by the big-volume Honda Pilot SUV. Honda will begin awarding supplier contracts for that nameplate’s next generation later this year.

While the MDX is on track for sales of about 70,000 a year, the Pilot is being forecast for 2008 model-year sales of 190,000 a year, according to CSM Worldwide, the Farmington Hills, Mich., forecasting firm. That’s up from 128,158 U.S. sales in 2004.

A spokesman for Honda of America Manufacturing Inc. in Marysville , Ohio , which manages North American purchasing, declined to comment on future MDX plans or to discuss what will become of the suppliers to the current program.

Visteon’s module is part of an interior redesign and may combine parts currently supplied by Nippon Seiki Co. Ltd. of Japan and Intertec Systems LLC. Intertec is a North American 50-50 joint venture between Johnson Controls Inc. and Inoac Corp. of Japan . The Visteon component also may displace content currently made in-house by Honda.

Honda business is not new for Visteon. The Van Buren Township, Mich., company also supplies instrument cluster modules to the Honda Accord, which is built in Ohio . But the expansion of business is an indication that the parts giant is far from down and out.

In May, Visteon unloaded 24 unprofitable factories and technical operations onto Ford, the company that spun it off in 2000. The move shrinks Visteon’s annual revenue from $18.9 billion to $11.4 billion.

Visteon could become profitable in 2006, says John Casesa, a Merrill Lynch analyst in New York . The company posted combined losses of $3.2 billion from 2000 through the first quarter of 2005.

Paul Haelterman, CSM’s director of market assessment, believes Visteon stands to gain ground in the coming months, specifically in the instrument cluster and cockpit business.

“People seem to be missing the fact that Visteon is a damn good cockpit supplier,” Haelterman said. “They’re one of the few companies in the segment that can extend their resources globally. They can operate on programs in North America , Asia and Europe at the same time.”

As far as other opportunity in the segment, Visteon is watching as Collins & Aikman Corp., its closest cockpit component competitor, claws its way through an uncertain bankruptcy. Collins & Aikman of Troy , Mich. , supplies approximately half of the instrument panel modules used by DaimlerChrysler and holds a 19 percent share of the North American market, according to CSM numbers.

CSM ranks Visteon No. 1 in the segment, with a 24 percent share of North America ‘s cockpit market, based on the number of units.

Collins & Aikman filed for Chapter 11 bankruptcy protection in May and is currently re-examining existing contracts.

2005 Automotive News. All Rights Reserved.

_______________________________________

Click here to view the rest of today’s headlines.

You May Also Like

Dayton Parts Offers New Aftermarket Products

A new DPF differential pressure sensor, engine oil dipsticks and fuel injector wiring harnesses designed to match OEM spec.

Dayton-parts-releases-2-sensor-dipstick-harnesses-1400

Dayton Parts is introducing several new parts, including a DPF differential pressure sensor, fuel injector wiring harnesses along with engine oil dipstick and tube assemblies. Dayton’s new DPF differential pressure sensor (p/n 904-7001) fits various Hino truck models, including 238, 258, 268, 198, 358 and 195, from model year 2008 to 2020. It’s designed to replace the sensor with the OE number S893901090. The company says the sensor accurately measures pressure inside the DPF to help determine when regeneration cycles are required.

Hunter Engineering Releases Alignment Coverage for Hundreds of Vehicles

The release covers brand-new records – those not yet in existence at the time of the previous release – as well as updates to existing records, covering OEM changes to existing vehicles, the company said.

Hunter Engineering Releases Alignment Coverage for Hundreds of Vehicles
FCS Introduces 42 New Numbers in May

Complete strut assemblies, shock absorbers, shock absorber assembly kits and suspension struts for some of the most popular VIO applications are included in the release, FCS said.

FCS Introduces 42 New Numbers in May
USMW Releases New Fuel Pump Module Assembly

US Motor Works released Part No. USEP9214M, for several BMW applications.

USMW-Releases-New-Fuel-Pump-Module-Assembly
MEYLE Expands Electronics, Sensor Product Portfolio

The focus is on assistance systems and engine and transmission management, with more than 300 new part numbers, as well as the expansion of its product lineup for EVs.

MEYLE Expands Electronics and Sensor Portfolio by Over 300 References

Other Posts

Dana, Fox Factory Collaborate on Chevrolet Silverado Truck Build

Dana 60 semi-float rear axles will be featured on the limited-edition Chevrolet Silverado Fox Factory Edition truck.

Dana, Fox Factory Collaborate on Chevrolet Silverado Truck Build
Standard Motor Products Expands Cam and Crank Sensor Program

The Standard and Blue Streak Camshaft and Crankshaft Position Sensor program features nearly 1,000 SKUs covering more than 250 million vehicles, SMP said.

Standard-Motor-Products-Expands-Cam-and-Crank-Sensor-Program
DMA Adds New BrakeMaster Coverage

New coverage for Ford and Chevy includes popular pickup trucks and SUVs.

Brakemaster
GSP Releases New CV Axle Part Numbers

GSP said 14 new CV axle part numbers are in stock and ready to ship.

GSP