Administrators from KPMG have been appointed to car parts supplier Visteon UK following substantial losses.
Jim Tucker and John Hansen were appointed as joint administrators for the UK arm of Visteon Corporate, which has not been profitable since 2000. It had relied heavily on the global arm to bail it out of trouble racking up £669m in losses.
The corporate arm is now the biggest creditor with Visteon UK owing it £400m. Visteon Corporate has said it can no longer afford to support the business, prompting the move into administration.
The administrators have closed all three factories based in Basildon, Enfied and Belfast resulting in 565 redundancies. The remaining 45 people will stay on with the company to assist the administrators with the winding down of the business.
Tucker said: 'The entire automotive supply chain has been under pressure for a number of years. In the current economic downturn, car sales have dropped dramatically, which has caused further severe pressure on parts suppliers.'
Visteon was established by Ford with significant and overriding commitments to employees. The manufacturing operations in the UK were never able to make a profit as stand alone operations, as part of Ford they were satellite operations of main plants and acted as benchmark pricing activities. Basildon was an 'overflow' plant for Dagenham. I have a complete set of the terms and conditions set in place when Ford established 'NewCo' and the commitments made at the time to Ford employees.
Posted by: paul bailey, 31 Mar 2009 | 00:00
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