Car parts supplier Visteon has filed for Chapter 11 bankruptcy protection for its US operations.
The company, which employs 11,000 people, has failed to make an annual profit since being spun off by Ford nine years ago, and made headlines when it closed its three UK operations with the loss of 600 jobs earlier this year.
"During the reorganization period, we will seek to address our capital structure and legacy costs that are not sustainable given the current economic environment," Visteon CEO Donald Stebbins said in a statement.
Visteon is expected to lean heavily on former parent company Ford for finance during its restructuring period. This has prompted analysts to fear for Ford's well-being, as it does not currently have surplus reserves of cash for such ventures.
However, with Ford relying on Visteon for a large amount of its car parts, it has little choice but the prop up the company.
Hyundai also accounts for around 30 per cent of Visteon's business.
Add your comment