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...In the nine years since FoMoCo spun off its vehicle climate systems, interior parts, lighting and electronic systems maker, Visteon has never posted an annual profit. After losing $663 million last year, Visteon warned a few weeks ago that they may have to file if the creditors would not agree to concessions. Nobody conceded....
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To put that in perspecive, that's a $75,684 per hour loss for the year.
Compare that to GM, who lost -$2,739,726 an hour in the first quarter of 2009.
Oh yah, Visteon emloys 31,000 people. Or did. Or might still since it's Chapter 11. I wonder if the union contracts will still be worth spit and string when it's over. Ah, well.
Bscially they will in many ways endup like Chrysler and soon to be GM. The court will decide who gets what and they are likely to reorganize.Many airlines have gone thru this.
that is an interesting story. an even bigger story could be how this will play out with the PBGC. Visteon lists the Pension Benefit Guaranty Corp., a government agency that oversees pensions, as its second-largest creditor. The agency says Visteon owes more than $600 million into its pension funds. Trouble for federal agency that backs 44 million pensions | csmonitor.com:
Going into this year, the PBGC was running a deficit of $10.7 billion as the premiums set by Congress and paid by on-going companies were less than the payments to retirees. Then, on Wednesday it said for the first half of 2009, the deficit had ballooned out to $33.5 billion, the largest in PGBC history. Now Congress, who has oversight over the entity, is worried about what might happen if some really large corporation—think auto industry—dumped pension liabilities on the PBGC.
...In the nine years since FoMoCo spun off its vehicle climate systems, interior parts, lighting and electronic systems maker, Visteon has never posted an annual profit. After losing $663 million last year, Visteon warned a few weeks ago that they may have to file if the creditors would not agree to concessions. Nobody conceded....
The same with Delphi after it was spun off from GM in 1999 it was never able to make a proffit. Bankrupt since 2005 it has done nothing but suck in millions from GM.
Ford is still losing billions so they are in no position for this.
the US government *wants* Ford to need a handout. As long as Ford can operate without government money, Ford will stay independent. Once the government drives Ford into requiring a handout (or into Bankruptcy) then that will be the wedge that leads to government control of all three US automakers.
The imports (including domestically produced imports) can be controlled through diplomatic or trade means. But there is no way for the government to completely reshape the car industry according to vision unless they get Ford under their thumb as well.
The same with Delphi after it was spun off from GM in 1999 it was never able to make a proffit. Bankrupt since 2005 it has done nothing but suck in millions from GM.
Ford is still losing billions so they are in no position for this.
It is so dysfunctional.
Dysfunctional it is,but still paying out bonuses,having company picnics,paying OT (as I have been instructed to clarify,I am speaking about the DELPHI plants in Western NY specifically).
Wonder what will happen once GM does purchase them... wonder if they will eventually sell them off and continue to look further into outsourcing.
the US government *wants* Ford to need a handout. As long as Ford can operate without government money, Ford will stay independent. Once the government drives Ford into requiring a handout (or into Bankruptcy) then that will be the wedge that leads to government control of all three US automakers.
The imports (including domestically produced imports) can be controlled through diplomatic or trade means. But there is no way for the government to completely reshape the car industry according to vision unless they get Ford under their thumb as well.
Yeah, I agree so. I don't think that the government could live up to the expectations of the market for those three car makes. Ford owning jaguar is already a big challenge for the former since they they have to make jaguar cars with jaguar parts and not ford parts. What will happen if ford will be owned by the government? The government has tons of things to consider and that may limit their production of cars known from the three car makes.
But ford according to recent sales is far ahead og both chrysler and GM. Their sales were up over a year ago while GM anmd chryslers contiused steep declines. Looking at Fords line up they are way ahead of both.Frod is the only one of teh big htree that has a chance really.
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