Visteon Corp., the auto parts maker that used to be a unit of Ford Motor CO., is taking into consideration a plan to split into two companies, one focused on electronics and the other on climate controls, people familiar with the matter reported.
Visteon, which has yet to hire advisers for the split, is considering several moves like selling or spinning off the electronic business, the sources hinted. Any restructuring would probably not be done by the end of this year according to one of the people who asked to remain anonymous.
Maryann Keller, automotive consultant who was a board member of the Dollar Thrifty Automotive Group Inc. said that “Automotive conglomerates don’t work. No one wants to be a supermarket of products anymore. Everyone wants to be a bigger player in a smaller area.”
Visteon’s board of directors has concluded that the two divisions add little value working under the same corporate management. The company has shed units that don’t belong in either one of the two future planned divisions. According to research firm Gabelli & Co., broken up, Visteon’s parts could value 25% more than the whole company’s $4.5 billion market value at the end of trading on Tuesday.
Yesterday, Visteon rose 4.3% up to $107.49 in New York, giving the company a market value of around $1.73 billion.
By Gabriela Florea