Business Overview

-The Visteon Group (China) said it has generated 39.85 billion yuan in group operating profit for 2012, which was a gain of 13 percent from the previous year’s result. Exports during the year reached 787 million dollars, an increase of 16 percent year-on-year. At an executive meeting held in January, the company set a sales target of over 50 billion yuan for 2013. (From a press release, February 10, 2013)

- 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)

Interior and exterior Parts

Order
-Yanfeng Visteon (Beijing) Automotive Trim Systems Co., Ltd. will supply instrument panels, roof panels, tail doors, floor pans and insulators to Beijing Hyundai for the DMC luxury SUV. The supply program is expected make a significant contribution to Yanfeng Visteon’s sales over the next five years. (From news releases issued by multiple sources on January 17, 2013) 

New subsidiaries & Plants
-Visteon has established Yanfeng Visteon (Ningbo) Automotive Trim Systems Co., Ltd. near Shanghai VW’s Ningbo Plant. The new facility will prepare to start mass production by February 2014 after completing trial production and conducting small-lot production in 2013. Its product line will include door trims and instrument panels for the Shanghai VW SK371, the VW373 and the Touran NF built in Ningbo. (From news releases issued by multiple sources on January 20, 2013)

-Yanfeng Visteon Automotive Trim Systems Co., Ltd. and Yanfeng Plastic Omnium Automotive Exterior Systems Co., Ltd. are currently constructing a new plant at the Fenggang Bihu Industrial Zone in Dongguan City, Guangdong Province. The total investment in this construction project, which was launched in June 2012, is expected to reach 650 million yuan. Based on a plan to start commercial production in June 2013, the two companies are planning to spend 160 million yuan in the first phase by the end of this year, of which more than 50 percent has been already invested. The plant will increase its production in steps, targeting the volume worth 3.2 billion yuan in the first three to five years. It will produce products for 300,000 vehicles assembled by Changan PSA, which is only 10 kilometers away. Visteon is expecting it will be able to deliver its products to Changan PSA within three hours after receiving an order. (From news releases issued by multiple sources on December 7, 2012)

-Yanfeng Visteon Automotive Trim Systems Co., Ltd., which is a joint venture between Visteon and Huayu Automotive Systems, held an opening ceremony at its new plant in Kalol, Gujarat, India. The 46-million-square-meter facility was established in November 2011 with an investment of US$4 million. It will initially produce interior products such as instrument panels, door trims and pillars for the General Motors’ Enjoy MPV assembled in India. Mass production is scheduled to begin in the middle of October. (From a press release, July 27, 2012)

-On April 13, 2012, Yanfeng Plastic Omnium Automotive Exterior Systems Co., Ltd., a subsidiary of Visteon Group (China), and the authority of the National Shenyang Economic & Technological Development Area signed an agreement on the company’s project to establish a production facility in the Tiexi District of the development zone. Construction is scheduled to begin on May 1 based on a plan to start production in October 2013. The company’s second facility in the Shenyang area will manufacture bumpers for BMW Brilliance, having the capacity to produce 350,000 sets a year. The plant will be equipped with a water-based paint production line, having a seamless production system covering from injection molding up to product assembly. (From a press release, April 16, 2012)

Joint venture

-Johnson Controls Inc. announced that it signed a contract with Shanghai Yanfeng Johnson Controls Seating Co., Ltd. (YFJC) to set up a new seating mechanisms joint venture in Shanghai, China. The new joint venture is expected to become operational in the second half of 2012. The new joint venture will be called Johnson Controls Yanfeng Mechanisms Co., Ltd. (JCYM). It will supply major automakers in China with a comprehensive seating mechanisms portfolio, including tracks, recliners, adjusters and latches, as well as full service capabilities. All current seating mechanisms businesses and capabilities of YFJC and Johnson Controls in China will be transferred and integrated into this new joint venture. (From a press release on May 25, 2012)

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)

Terminate the nonbinding memorandum of understanding (MOU)
-Visteon Corporation and Huayu Automotive Systems Co., Ltd. (HASCO) announced that the companies have agreed to terminate the nonbinding memorandum of understanding (MOU) with respect to a potential transaction that would have combined the majority of Visteon's interiors business with Yanfeng Visteon Automotive Trim Systems, Co. Ltd (YFV). YFV is a Chinese joint venture between Visteon and HASCO. The two companies signed a non-binding MOU in November 2011. (From a press release on July 4, 2012)

Climate Control Divisions

Divestiture
-Halla Climate announced that it would acquire the automotive climate control business of the Visteon Group, its parent company. Halla Climate will invest a total of 439.1 billion won to purchase 18 companies engaged in vehicle air conditioning business, which will make it the second largest company in the global industry. The eighteen companies and the percentage to be transferred are as follows:Visteon Climate Control System (Chongqing) Co., Ltd.（Production company in China, 100.00%）; Visteon Climate Control (Nanchang) Co., Ltd.（Production company in China, 80.85%）; FAWER Visteon Climate Control System (Changchun) Company Limited（Production company in China, 50.00%）; Halla Climate Control (Dalian) Co., Ltd.（Production company in China, 24.90%）; Japan Climate Systems Corporation（Production company in Japan, 33.33%）; Visteon Japan Climate Ltd.（R&D center in Japan,　100.00%）; Visteon Climate Systems India Ltd. (Production company in India, 61.00%); etc. (Sales company in the Netherlands, 100.00%). (From a press release, January 11, 2013)

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）

Safety system

New plant
-Key Safety Systems (KSS) announced that its joint venture partnership YFKSS - Yangfeng Key Safety Systems (Shanghai) opened a new manufacturing facility in the Huairou region of Beijing, China. YFKSS will initially occupy 2000 square meters of the new factory, with more than 100 employees focused on steering wheel production. The site has ample capacity to accommodate further expansion as additional steering wheel business or additional product lines, including airbags and seat belts, phase in. Production has commenced at the factory with first customer shipments scheduled for August 2012. Separately, construction is underway for the new YFKSS Shanghai factory located in the Pudong Kangqiao region of Shanghai, China. That new factory will have more than 50,000 square meters of floor space. (From a press release on June 27, 2012)

Electronics system

-Visteon Corporation celebrated the expansion of its Yanfeng Visteon Automotive Electronics (YFVE) manufacturing facility in Shanghai, China. The expansion more than doubles the size of the plant to approximately 30,000 square meters (323,000 square feet); the facility now can accommodate up to 1,300 employees. The plant produces automotive electronics, including driver information, audio and infotainment, and center stack controls. The expansion boosts the plant's yearly capacity by almost 50 percent. (From a press release on June 5, 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)

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.

Capital Investment Projects

(as of Dec. 2012 )

Project	Investment made in 2012 (in million yuan)
Project of Yanfeng Visteon Jinqiao Automotive Trim Systems Co., Ltd.	85.31
Project of Yanfeng Visteon Automotive Electronics Co., Ltd.	123.19
Project of Shanghai Yanfeng Johnson Controls Seating Co., Ltd	728.39
Project of Yanfeng Visteon (Chongqing) Automotive Trim Systems Co., Ltd.	120.11
Project of Yanfeng Visteon Automotive Trim Systems Co., Ltd.	224.87