“This is appropriate in light of other motions before the court that are driven by immediate business consideration," Jim Fisher, Visteon director of corporate communications was quoted as saying by Autonews.
Ford called Visteon plans to award the $80.3 million ($30.1 million of which would have gone to only 100 key employees) as being “entirely too rich, given current market and economic conditions.”
“Job retention should be enough,” Ford said in a statement. “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?”
Still, it is yet unclear whether Visteon will scrap the bonus program altogether or just postpone it. “Our preference is to have a consensual plan, and we plan to work with all our constituents and address as many concerns as we can,” Fisher said. “Ultimately, we will do what’s in the best interest of the company, our customers and stakeholders.”
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.
In nine years since it got separated from Ford, Visteon has never posted profit.