About Visteon Corporation
One of the largest auto parts makers in the US, Visteon Corporation operates across one chief business group: Electronic Products. The segment makes audio systems, driver control systems, infotainment systems, information displays, smartphone connectivity software components, powertrain, and feature control modules.
Visteon's operating structure is organized within its primary Electronics segment (98% of net sales). It provides vehicle cockpit electronics products including instrument clusters, information displays, infotainment systems, audio systems, telematics products, and heads-up displays.
Instrument clusters is its largest product, accounting for more than 38% of net revenue. Information displays is its second largest, generating 18%.
Visteon is stationed in Van Buren Township, Michigan. It has 17 electronics manufacturing and assembly facilities throughout Mexico, Portugal, Russia, Slovakia, France, Tunisia, India, Japan, South Korea, China, Thailand, and Brazil; among these facilities, 13 are leased and four are owned. The company also has 31 corporate offices, technical and engineering centers, and customer service centers spanning 12 countries around the world.
Sales and Marketing
Visteon sells its products primarily to global vehicle manufacturers such as Ford, Mazda, Nissan/Renault, General Motors, Honda, BMW, and Daimler. Its top three customers for 2016 included Ford, Mazda, and Nissan/Renault, accounting for 30%, 17%, and 15% of the company’s total revenue, respectively.
Visteon suffered a massive drop in revenue in 2015 as a result of the divestiture of its Climate Controls and Interiors operations. Revenues also dipped 3% from $3.25 billion in 2015 to $3.16 billion in 2016.
Electronics sales experienced higher production volumes, product mix, and net new business in 2016; however, the segment was negatively affected by unfavorable currency translations. The revenue decrease for 2016 was also attributed to decreased sales from another segment affected by the sale of its Germany Interiors facility and the wind-down of legacy climate facilities in South America.
Visteon's net income has also fluctuated over the years; after skyrocketing to $2.28 billion in 2015, net income nosedived by more than 96% to fall to $75 million in 2016. This was mostly due to losses from discontinued operations and the absence of about $2.3 billion it gained from discontinued operations the prior year.
Visteon has been reorganizing and getting rid of extraneous divisions and units in order to focus on its more profitable operations. As part of a strategic reorganization, Visteon in 2015 completed the sale of its former Climate Controls segment for approximately $3.4 billion. In the same year, its Visteon Deutschland GmbH subsidiary completed the sale to APCH Automotive Plastic Components Holding GmbH. In 2016 Visteon sold its Interiors operations in Argentina and Brazil in addition to its South Africa climate operations.
Targeting a new market ripe for growth, Visteon is expanding into the autonomous driving space. It is developing a secure autonomous driving domain controller platform with an open framework based on neural networks and projects a launch of the new technology in 2018.
Mergers and Acquisitions
Visteon also uses acquisitions as a means for fortifying its core operations. In mid-2016, Visteon acquired AllGo Embedded Systems Pvt. Ltd., an India-based leading supplier of embedded multimedia and smartphone connectivity software products, for $17 million. The acquisition enhanced Visteon’s global vehicle cockpit electronics business and enabled it to offer highly integrated products to automakers that includes smartphone connectivity features, multimedia software, and codecs (a device that compresses data to enable faster transmission and also decompresses received data).
1 VILLAGE CENTER DR
Van Buren Twp, MI 48111-5711
Phone: 1 (800) 847-8366
Employer Type: Publicly Owned
Stock Symbol: VC
Stock Exchange: , NASDAQ
SVP, Operations and Procurement: Sunil K. Bilolikar
President, CEO, and Director: Sachin S. Lawande
Chairman: Francis M. Scricco
Employees (This Location): 277
Employees (All Locations): 10,000
Van Buren Twp, MI
Van Buren Twp, MI
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