Skip to main content

Visteon terminates China deal but increases investment in Korea

Visteon Corporation and Huayu Automotive Systems Company have agreed to terminate the non-binding memorandum of understanding (MOU) with respect to a potential transaction that would have combined the majority of Visteon's global interiors business with Yanfeng Visteon Automotive Trim Systems. According to Don Stebbins, Visteon chairman, chief executive officer and president, “both parties worked hard to move the agreement forward, but there were a number of items that kept us from doing so.”
July 6, 2012 Read time: 2 mins
2165 Visteon Corporation and 6116 Huayu Automotive Systems Company have agreed to terminate the non-binding memorandum of understanding (MOU) with respect to a potential transaction that would have combined the majority of Visteon's global interiors business with Yanfeng Visteon Automotive Trim Systems. According to Don Stebbins, Visteon chairman, chief executive officer and president, “both parties worked hard to move the agreement forward, but there were a number of items that kept us from doing so.”

At the same time, Visteon also announced its intent to further invest in Korea to generate continued advanced technologies for radiators, condensers, evaporators and heater cores. The company intends to invest US$50 million to build a state-of-the-art wind tunnel and to expand its manufacturing footprint in Korea, including establishing the world's largest variable swashplate compressor production capability. The company says the transaction will strengthen its climate business. HCC's strength in developing advanced powertrain cooling technologies will support and complement Visteon's strong research and development capabilities in the US and Germany, leading to continued advanced products for customers and future growth.

"Visteon is committed to the long-term success of our climate business," said Stebbins. "Full ownership of HCC is an important next step in ensuring our continued global competitiveness.

"This transaction will pave the way for HCC to play an even greater role in the global climate market while reinforcing its leadership position in Korea," Stebbins added. "It also will facilitate future investment in climate technology and fully leverage the companies' combined strengths and synergies in engineering, manufacturing, purchasing and finance."

For more information on companies in this article

Related Content

  • Schneider Electric to acquire Telvent for $2 billion
    January 27, 2012
    Schneider Electric has signed a definitive agreement with Telvent GIT to make a cash tender offer for all of Telvent's shares at a price of $40 per share, which represents a premium of 36% to Telvent's average share price over the last 3 months.
  • ST Electronics and IBM Singapore collaborate for smarter mobility
    September 12, 2014
    ST Electronics (Info-Comm Systems) and IBM Singapore have signed a Memorandum of Understanding (MOU) to collaborate and explore opportunities to leverage transport data analytics to promote smarter mobility. The MOU will enable both companies to develop a mutually beneficial partnership into new strategic growth areas in transport data analytics for exchange technical dialogue around their products and capabilities, specifically on the use of smart analytics for urban mobility solutions. They will explo
  • Vitronic Group sold to Itis Holding
    May 23, 2024
    Itis, owned by investment firm PPF Group, will put in €50m upon "formal completion"
  • Nissan and Enel launch vehicle-to-grid project in the UK
    May 12, 2016
    Automotive manufacturer Nissan and multinational power company Enel are to launch a major vehicle-to-grid (V2G) trial in the UK, which will see one hundred V2G units installed and connected at locations agreed by private and fleet owners of the Nissan LEAF and e-NV200 electric van. By giving Nissan electric vehicle owners the ability to plug their vehicles into the V2G system, owners will have the flexibility and power to sell stored energy from their vehicle battery back to the National Grid. The annou