Visteon Group (China) FY2011

Business Highlights

Business Overview

- For 2011, the net sales of Visteon China is 555 million dollars, which is 7% of the total sales of the Group.(From Visteon's annual report)

Divestiture

- The Company and Huayu Automotive Systems Co., Ltd. (HASCO) announced that the companies' existing China joint venture, Yanfeng Visteon Automotive Trim Systems, Co. Ltd. (YFV) and Visteon have signed a non-binding memorandum of understanding (MOU) with respect to a potential transaction that would combine the majority of Visteon's interiors business with YFV. Definitive agreements for the proposed sale are targeted to be signed in early 2012. The transaction, once completed, would result in a global interiors company with estimated annual revenue of approximately 4 billion USD. (From a press release on November 30, 2011)

Interior and exterior Parts

3 millionth automotive seat off the production line

- Shanghai Yanfeng Johnson Controls Seating Co., Ltd., which is a joint-venture company between Yanfeng Visteon and Johnson Controls, celebrated its 3 millionth automotive seat off the production line on December 30, 2011. Since it started supplying seats for Shanghai GM vehicles at a pace of 20,000 units a year in 1999, the joint venture facility has been progressively increasing its capacity up to 500,000 units a year. The president of the joint venture said that although it took 13 years to achieve the first 3 millionth mark, the company is willing to increase the volume by another 3 million units within the next five years. The company has been selected as the Excellent Supplier by Shanghai GM for 12 years in a row. (From a press release, January 6, 2012)

Award
- Key Safety Systems (KSS) announces that its joint venture partnership YFKSS - Yangfeng Key Safety Systems (Shanghai) received the Chery Inc. Best Quality Supplier Award. (From a press release on March 16, 2012)
-Key Safety Systems (KSS) announced that its joint venture partnership YFKSS - Yangfeng Key Safety Systems (Shanghai) received the JAC Best Supplier Award. (From a press release on March 14, 2012)
- Key Safety Systems (KSS) announced that its joint venture partnership YFKSS - Yangfeng Key Safety Systems (Shanghai) received the SVW (Shanghai Volkswagen) Excellent Supplier Award. (From a press release on March 12, 2012)
- Key Safety Systems (KSS) announced that its joint venture partnership YFKSS, Yangfeng Key Safety Systems (Shanghai) received a technology award from SGM (Shanghai General Motors). (From a press release on March 8, 2012)

New plant in Yizheng

- Yanfeng Visteon and its bumper production joint venture, Yanfeng Plastic Omnium Automotive Exterior Systems Co., Ltd. (YFPO), held a groundbreaking ceremony for their new plant in Yizheng, Jiangsu Province on December 27, 2011. The Yizheng facility will be YFPO's ninth production base. It is its third plant to support Shanghai GM. The new plant is scheduled to be completed and start production at the end of December 2012. When the first phase of the construction project is completed, it will be able to manufacture products for 350,000 vehicles a year. (From a press release, January 4, 2012)

New plant in Pudong Kangqiao

- Key Safety Systems (KSS) announced that its Joint Venture Partnership YFKSS - Yangfeng Key Safety Systems (Shanghai) began construction of a new manufacturing facility in the Pudong Kangqiao region of Shanghai, China. The new factory will have over 50,000 square-meters of floor space and will be completed during the second half of 2012. (From a press release on October 31, 2011)

Second plant in Chongqing

- On October 20, 2011, Yanfeng Visteon held a groundbreaking ceremony for its new plant at the North New Area in Chongqing. The new plant will have the capacity to produce 700,000 interior systems, 300,000 exterior systems, and 800,000 safety modules a year. It will function as the Visteon Group’s new supply base for delivering products to the OEMs located in Chongqing Liangjiang Internaitonal Car City. (From a press release, October 20, 2011)

 

Climate Control Divisions

New plant in Chengdu

- The Company announced that its automotive climate joint venture in China, FAWER Visteon Climate Control System (Changchun) Co., Ltd. (FVCC), has opened a plant in Chengdu, Sichuan province, China to produce aluminum radiators. The new plant is a wholly owned subsidiary of FVCC, a joint venture of The Company and FAWER Automotive Parts Company Ltd. The facility will support the FAW-Volkswagen manufacturing base in Chengdu, as well as other automakers in southwest China. The 3,700-square meter (39,800-square foot) plant is expected to have an annual production capacity of 500,000 units by 2013. (From a press release on April 9, 2012)

Intention to invest Wuhu Bonaire

- The Company announced its intention to invest in Wuhu Bonaire Auto Electrical Systems Co., Ltd. (Bonaire), a subsidiary of Wuhu Chery Technology. The investment will enhance Visteon's climate product capabilities while strengthening its business relationship with Chery. Founded in 2003, Bonaire is an automotive climate supplier that develops and manufactures heating, ventilation and air conditioning (HVAC) systems and engine cooling systems. Located in Wuhu, Anhui province, Bonaire has more than 700 employees including nearly 200 engineers. (From a press release on August 22, 2011)

R&D

R&D facility

Company name Year established City Overview
Visteon China Technical Center(CTC) Nov. 2005 Shanghai - The company integrates the group's engineering activities that focus on automotive interior and electronic parts in the Asia Pacific region. CTC will also focus on developing various products, some to be marketed globally and others to specific countries.
Testing Center Mar. 2009 Shanghai - Visteon and Halla Climate Control (HCC) established a new facility in Shanghai to measure and test various air conditioner parts. The testing center is equipped with various measuring systems including an airflow meter, a noise and vibration measuring room for HVAC systems and cooling systems, and measuring devices for evaporators and heaters.

Investment Activities

Capital Investment Projects

(as of Dec. 2011 )
Project Planned amount of investment (in million yuan) Investment made in 2011  (in million yuan)
Retooling production facility at Yanfeng Visteon Jinqiao Automotive Trim Systems Co., Ltd. 823.73 71.41
Retooling production facility at Yanfeng Visteon Automotive Electronics Co., Ltd. 181.12 98.52
Retooling production facility at Shanghai Yanfeng Johnson Controls Seating Co., Ltd 415.32 241.23
Retooling production facility at Yanfeng Visteon (Chongqing) Automotive Trim Systems Co., Ltd. 212.33 6.06