Detroit News (Detroit) - Visteon Corp. CEO Donald Stebbins said Tuesday that the auto supplier is interested in acquisitions, and doesn't plan to move its headquarters from Van Buren Township as it boosts production outside the United States.
"We will look at strengthening our four products groups," Stebbins said.
Visteon, which focuses on climate, interiors, lighting and electronics, isn't considering acquisitions outside those areas, he said.
Stebbins' comments came after he spoke at a breakfast held in conjunction with the SAE 2011 World Congress, an annual conference of automotive engineers.
Visteon last week completed the sale of $500 million in debt, giving it more flexibility to pursue acquisitions. The company, Ford Motor Co.'s former parts division, has had limited merger and acquisition activity, and companies are cautious about making deals, said Rebecca Lindland, an auto analyst with IHS Automotive.
"We made it out of the hospital, but we are still in physical therapy," she said about the auto industry. "There are deals out there for healthy companies, but they are going to be cautious."
In response to a question, Stebbins said the company has no plans to move from Michigan — even though it now has a much smaller footprint.
Visteon built its campus headquarters in Van Buren Township and once had 3,300 workers at the site. Today, the company has about 1,100 workers there. Two other companies use part of the space: General Electric has around 1,500 employees and Dana Corp. has 200 employees.
"When we were shrinking it wasn't exactly an exciting place to work, but it's great now," Stebbins said.
The company emerged from Chapter 11 bankruptcy last September after reaching a deal with Ford that guaranteed Visteon $600 million in annual business through 2013, and waived payments that Visteon was expected to make to the automaker.
During its bankruptcy stay, Visteon shed its two remaining Michigan factories. It sold its interest in its Benton Harbor joint venture and its Highland Park plant to Johnson Controls Inc.
Since 2006, Visteon has closed, fixed or sold 51 facilities and reduced overhead by $1 billion.
"That's essentially one facility every five weeks for five years," Stebbins said, shrinking the company's work force by 22,000.
Today, Visteon operates one factory in the United States — a climate parts plant in Shorter, Ala., with 300 workers.
Despite a $9 billion reduction in revenue, Visteon's profitability is its best ever, Stebbins said. The company will release its annual report next week.
Visteon has been especially strong outside the United States, especially in Asia.
When Visteon was spun off by Ford in 2000, 86 percent of its revenue was generated by Ford and 75 percent was from North America. Today, including joint ventures, Asia accounts for 56 percent of Visteon's revenue.
