Detroit 3, Nissan to End Contracts with Visteon

Visteon, currently operating under bankruptcy protection, might lose contracts with GM, Chrysler and Ford, also known as Detroit 3, as well as with Japanese carmaker Nissan. In a report published today, Autonews informs that all the aforementioned companies might end their supplying business with Visteon through “a combination of re-sourcing supply agreements to other suppliers or through the same of some of Visteon's US plants”.

General Motors and Ford have already confirmed the decision while Chrysler refused to comment on the reports until the two sides managed to end the deal. Nissan declined to comment.

Visteon spokesman Jim Fisher also confirmed, saying that this is nothing than a part of Visteon's strategy to exit non-competitive and non-core markets, including North America.

"We're continuing to work with our customers in the core areas of electronics, interiors (outside North America) and lighting and we're retaining business with our customers in those areas, we intend to have an engineering and manufacturing presence in the US to support those core products," Fisher was quoted as saying by the aforementioned source.

Visteon filed for bankruptcy in May, posting total assets amounting to $4.58 billion and a total debt of $5.32 billion. The company has already announced that its non-US operations won't be affected as it continues to work with several other partners, including Renault to which it supplies several parts for its models.

"Visteon is taking this step to maximize the long-term value of the company. During the reorganization period, we will seek to address our capital structure and legacy costs that are not sustainable given the current economic environment," Visteon Chief Executive Donald Stebbins said in a statement when filing for bankruptcy.