Ford objection was raised on Friday, after the part supplier made a proposal to give up to $80.3 million in bonuses to employees to insure their good performance through the bankruptcy process.
A good idea, you might think. Yet, Visteon planned to give no less than $30.1 million to only 100 key employees. Ford says it doesn't understand how Visteon can offer bonuses, under bankruptcy, while pay cuts, layoffs and bonus cuts are the guidelines in today's environment.
“Job retention should be enough,” Ford said in a statement quoted by Autonews. “In this bleak job market, does it make business sense for a company to pay bonuses to its key employees for simply remaining employed and doing the jobs that they were already being paid to do?”
Ford's objection was raised because the American manufacturer is the largest possible source of financing for Visteon. “As the sole current and potential majority future source of funding to the debtors, Ford has a substantial economic stake in the Visteon incentive program,” the automaker said.
Back in June, Visteon received $125 million from Ford. As the largest customer in Visteon's portfolio, Ford had no choice but to do so. In addition, Ford assumed a $163 million secured revolving credit from some of the lenders in mid-May.
Visteon filed for bankruptcy at the end of May, following a nine year-no profit struggle.
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