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Latest Business News

Fitch Ratings Lowers Outlook for Visteon

Wednesday, November 23, 2005 4:34:35 PM
By DEE-ANN DURBIN

DETROIT (AP) - Fitch Ratings said Wednesday it is changing its outlook on Visteon Corp. from positive to negative due to uncertainty about the auto supplier's future as it deals with higher raw material prices and possible production cutbacks at automakers.

Fitch assigned a positive outlook to Visteon in May after the company announced a restructuring agreement that allowed it to transfer 23 of its most unprofitable plants back to its former parent Ford Motor Co. That transfer was completed in October.

Fitch said the agreement significantly improved Visteon's operating structure. Visteon's average hourly wages for manufacturing workers have been reduced from $38 to $17 because it has fewer plants with workers represented by the United Auto Workers.


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