Visteon Corporation Business Report FY ended Dec. 2016

Financial Overview

(in million USD)
FY ended Dec. 31, 2016 FY ended Dec. 31, 2015 Rate of change
Net Sales 3,161 3,245 (2.6) 1)
Net Income 75 2,284 (96.7) 2)
Sales by Segment
Electronics 3,107 3,107 0.0 3)

1) Net Sales
-The Company’s sales for the fiscal year ended December 31, 2016 decreased by 2.6% over the previous year to USD 3,161 million. Negative currency effects, decreased sales in the Other segment caused by the divestiture and wind-down of relevant businesses, and reduced customer pricing all contributed to the decrease in sales.

2) Net Income
-For the fiscal year ended December 31, 2016, the Company had a net income of USD 75 million, a decrease of 96.7% from the previous year. The main cause for the decrease in net income was the one-time gain of USD 2,324 million in the fiscal year ended December 31, 2015 from the Company’s sales of its Climate segment. Other minor factors contributing to the decrease include losses from discontinued operations of USD 40 million and a restructuring expense of USD 49 million. These losses were partially offset by higher gross margins and lower SGA costs which contributed gains of USD 59 million.

3) Electronics
-The Company’s Electronics segment had sales of USD 3,107 million in the fiscal year ended December 31, 2016, unchanged from the previous year. Higher production volumes and new business increased sales in the segment by USD 115 million. Sales increased in Asia Pacific and Europe, remained level in North America, and decreased in South America. These gains were offset by negative currency effects and customer pricing decreases.


-On December 1, 2016, the Company completed the sale of its Interiors operations in Argentina and Brazil, completing the divestiture of its Interiors segment.

-In the fourth quarter of 2016, the Company sold its Climate operations in South Africa.


-The Company announced the completion of its acquisition of AllGo Embedded Systems Pvt. Ltd., an India-based supplier of embedded multimedia and smartphone connectivity software solutions to the global automotive industry. The two companies initially announced plans for the transaction in January 2016. AllGo focuses on developing Linux and Android-based applications for the automotive market. The transaction includes AllGo's technology assets, automotive business and approximately 140 employees mostly consisting of software engineers based in India, supported by sales offices in the U.S., Europe and Asia. (From a press release on July 11, 2016)

Joint Ventures

-Grupo Antolin-Irausa, S.A. announced that it has opened a new plant in Wuhan, Hubei Province, China to manufacture headliners and door panels for Renault, PSA, Nissan, Infiniti and Honda. This project is a joint venture with Dongfeng Visteon. Both parties have invested more than EUR 11 million that will expand employment from 100 to approximately 125 employees at the end of 2016. (From a press release on April 12, 2016)


-The Company announced that it is supplying a range of advanced driver information systems and information displays, including new dual view technology, for the Jaguar "F-PACE". The instrument cluster is the latest generation of the Company’s fully reconfigurable cluster platform first launched on Land Rover’s "Range Rover" and Jaguar "XJ" models. The Company supplies three versions of the information display integrated in the "F-PACE’s" InControl Touch infotainment system. (From a press release on November 8, 2016)

-The Company is preparing to launch its SmartCore connected domain controller with a European automaker on a global vehicle program in 2018. SmartCore combines previously separate instrument clusters, head-up displays (HUD) and advanced driver assistance system (ADAS) domains on a one-chip, multi-domain controller that can be accessed through an integrated, easy-to-use human machine interaction (HMI). (From a press release on January 6, 2016)

-Contract information for vehicles launched in 2016

Company Model Parts Supplied
GM Cadillac CT6 Instrument cluster
Buick LaCrosse Instrument cluster
Buick Excelle Infotainment system, Instrument cluster
Buick GL8 HMI infotainment system, Instrument cluster
Peugeot Traveller Head-up display
Citroen SpaceTourer Head-up display
C6 Instrument cluster
Ford Escape Instrument cluster, Climate control head unit
Fusion Multi-function display
SuperDuty Silverbox audio system
SAIC GM Chevrolet Malibu Instrument cluster
Renault Logan Bezel audio system
Kwid (India) Instrument cluster
FCC Mazda CX-4 Climate control head unit
FCA Chrysler Pacifica Climate control head unit
Honda Acura CDX Head-up display, Instrument cluster
Acura MDX LTE telematics unit
Mazda Mazda3/Axela Connectivity master unit
Mazda 2/Demio Instrument panel module display
FAW B50 Remote keyless entry, Body control module, Immobilizer, Climate control
Volkswagen Passat Instrument cluster
SAIC VW Santana GP Instrument cluster
Porsche Panamera Instrument cluster
Jiangling YuSheng 330 Instrument cluster
Tata Hexa Instrument cluster
Opel Zafira Tourer Instrument cluster
Dongfeng PV AX5 Instrument cluster


-For the fiscal year ending December 31, 2017, the Company expects to have sales between USD 3.1 billion and USD 3.2 billion as well as an adjusted EBITDA between USD 355 million and USD 370 million.

R&D Expenditure

(in million USD)
FY ended Dec. 31, 2016 FY ended Dec. 31, 2015 FY ended Dec. 31, 2014
Overall 295 294 257

-After its restructuring, the Company expects to budget approximately 12% to 12.5% of its sales per year for research and development spending.

R&D Facilities

-The Company has 20 technical centers located in the following 12 countries:

  • Brazil
  • Bulgaria
  • China
  • France
  • Germany
  • India
  • Japan
  • Mexico
  • Portugal
  • South Korea
  • UK
  • U.S.

-The Company announced that its new technical center in Silicon Valley will lead its development of artificial intelligence (AI) for autonomous vehicles. The new technical center in Santa Clara, California, will work closely with other technical centers in developing artificial intelligence software, advanced driver assistance systems (ADAS) and deep machine learning. The center is located near the West Coast offices of various automotive OEMs and tech companies, Stanford University and the University of California, Berkeley. The Silicon Valley office will play a key role in delivering control systems, localization and vision processing by interpreting live camera data and converting it to information required for autonomous driving. The Company plans to launch its first autonomous driving domain controller platform in 2018. (From a press release on December 13, 2016)

Product Development

Systems showcased at 2017 CES
-The Company will showcase its latest innovations for the connected car at CES 2017 in Las Vegas. Headlining the Company’s exhibit is the debut of its next-generation infotainment platform, Phoenix, which is designed to unlock innovation by enabling third-party developers to create apps easily, while delivering built-in cyber security and over-the-air updates. Other exhibit highlights include an in-vehicle augmented reality windshield head-up display that overlays virtual information directly in the driver's sight; a full range of all-digital instrument clusters; and an array of eye-catching information displays. (From a press release on December 21, 2016)

Head-up displays
-The Company is displaying multiple head-up display (HUD) applications at 2016 International CES, including four levels of combiner HUD that expand head-up technology beyond the luxury segment to mass-market vehicles. The Company plans to launch its latest combiner HUD solutions with a number of automakers in the Asian and European markets during the 2016 and 2017 model years. (From a press release on January 4, 2016)

Capital Expenditure

(in million USD)
FY ended Dec. 31, 2016 FY ended Dec. 31, 2015 FY ended Dec. 31, 2014
Electronics 74 99 87
Other - 4 2
Corporate - 3 7
Total 74 106 96

Investments outside U.S.

-The Company is expanding its software operations in Bulgaria. Following significant growth in demand for its software services, the Company is relocating its 700 employees in the Bulgaria capital of Sofia to a new 89,000-square-foot office space, with plans to further expand the facility to accommodate up to 150 additional employees. Initially established as a software startup in 2001, the Company’s software center in Sofia provides infotainment, head-up displays and innovative solutions for global automakers. (From a press release on May 16, 2016)