 Ford is hoping to reduce its reliance upon a single supplier |
US car giant Ford will take control of 23 American and Mexican facilities currently run by its main parts supplier Visteon on 1 October. Ford agreed to takeover the loss-making facilities back in May, as a means to help Visteon improve its finances.
The 23 Visteon sites will be run by a new temporary Ford subsidiary from October, ahead of their planned sale.
Some 23,000 people work across the facilities and Ford said it hoped to offer voluntary redundancy to 5,000.
Ford said selling the facilities would help it better diversify its supplier base.
New Ford business Automotive Components Holdings will run them until buyers can be found.
Tough markets
Earlier this year, Visteon posted a loss of $118m (�65m) for the January to March period, compared to a $20m profit during the same time last year.
The group, which was spun off from Ford in 2000, still relies on the carmaker for 70% of its business.
In July, Ford announced a 19% fall in second quarter profits, hit by tough competition from both overseas and fellow American competitors.
"The arrangement [with Visteon] is a key element of Ford North America's strategy to improve our cost structure while protecting the supply of components," said Al Ver, Ford vice president and chief executive.
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The arrangement [with Visteon] is a key element of Ford North America's strategy to improve our cost structure while protecting the supply of components
