Visteon wants alliances, acquisitions, plus non-automotive activities
By N. Mohan | 24 Mar 1999
Visteon Automotive Systems, the $18 billion subsidiary of Ford Motor Company of the US, is planning substantial investments in India. Some of these will be in the non-automotive sector. The company will opt for acquisitions and mergers for this purpose, if necessary.
Visteon's president Craig Muhlhauser says his company would like to have partnerships in India. "I would include mergers and acquisitions under the definition of partnerships," he said while opening Visteon's manufacturing facilities at Maraimalai Nagar near Chennai recently.
Visteon India, the group's Indian subsidiary, has two units at Maraimali Nagar - the $72 million Visteon Powertrain Control Systems India Pvt Ltd, and the $78 million Visteon Automotive Systems India Pvt Ltd. Visteon Powertrain Control Systems makes starter motors and alternators, while Visteon Automotive Systems makes climate control systems, instrument clusters and an assortment of plastic components.
Visteon plans to enter the non-automotive sector to counter the recession in the automobile industry. Power generation, medical systems, semi-conductors and software are its preferred areas of interest. Automotive glass and chassis are two other products the company wants to evaluate.
Worldwide Visteon's revenue from non-automotive sector is negligible, but it plans to increase this to 25 per cent.
Muhlhauser expects Visteon's revenue stream to shift strongly towards Asia. India, Japan and Korea will account for a considerable portion of its revenues in future. At present as much as 81 per cent is generated from north America, 14 cent from Europe and just 5 per cent from the rest of the world.
Visteon India currently sources 37 per cent of its raw materials locally. Items like clad aluminium, engineering plastics and nylons are still imported. However, the company is persuading global suppliers to locate their facilities in India.
Visteon's president Craig Muhlhauser says his company would like to have partnerships in India. "I would include mergers and acquisitions under the definition of partnerships," he said while opening Visteon's manufacturing facilities at Maraimalai Nagar near Chennai recently.
Visteon India, the group's Indian subsidiary, has two units at Maraimali Nagar - the $72 million Visteon Powertrain Control Systems India Pvt Ltd, and the $78 million Visteon Automotive Systems India Pvt Ltd. Visteon Powertrain Control Systems makes starter motors and alternators, while Visteon Automotive Systems makes climate control systems, instrument clusters and an assortment of plastic components.
Visteon plans to enter the non-automotive sector to counter the recession in the automobile industry. Power generation, medical systems, semi-conductors and software are its preferred areas of interest. Automotive glass and chassis are two other products the company wants to evaluate.
Worldwide Visteon's revenue from non-automotive sector is negligible, but it plans to increase this to 25 per cent.
Muhlhauser expects Visteon's revenue stream to shift strongly towards Asia. India, Japan and Korea will account for a considerable portion of its revenues in future. At present as much as 81 per cent is generated from north America, 14 cent from Europe and just 5 per cent from the rest of the world.
Visteon India currently sources 37 per cent of its raw materials locally. Items like clad aluminium, engineering plastics and nylons are still imported. However, the company is persuading global suppliers to locate their facilities in India.