DETROIT (Reuters) - Ailing auto parts supplier Visteon Corp. (VC.N) will offer buyouts to 5,000 workers and transfer hourly employees represented by the United Auto Workers union to former parent Ford Motor Co. (F.N) as part of a restructuring plan, a local UAW official said on Tuesday.þþAlso, as part of the deal, Visteon will transfer 13 U.S. plants to a limited liability company controlled by Ford and transfer two more factories to the second-largest U.S. automaker, said Eugene Morey, president of UAW Local 849, which represents workers at Visteon's Ypsilanti, Michigan, factory.þþ``Those who are Visteon employees right now will transfer to become Ford employees,'' said Morey, who was among union leaders briefed on the restructuring plan earlier on Tuesday.þþ``There are a limited number of buyouts, which would probably be in the area of 5,000,'' Morey said.þþVisteon's 15 U.S. plants have about 18,600 workers represented by the UAW, including 17,700 who are Ford employees indefinitely assigned to the plants. Visteon reimburses Ford for their wages and benefits, though Ford has subsidized the operations.þþThe two plants that will be transferred back to Ford are a Rawsonville, Michigan, factory that makes engine parts and another in Sterling Heights, Michigan, that makes chassis components, Morey said.þþThe plants in the limited liability company would eventually be restructured and sold, he added.þþFord spokesman Glenn Ray declined to comment on the plan, while a Visteon spokeswoman did not return calls seeking comment.þþThe UAW leadership supports the restructuring plan that Visteon recently reached with Ford, which accounts for about 70 percent its revenue.þþ``The council is unanimously recommending it,'' UAW President Ron Gettelfinger said of the plan.þþGettelfinger spoke with reporters after a meeting with UAW officials in downtown Detroit, where details of the turnaround plan were discussed behind closed doors.þþA union official said rank-and-file members of the traditionally militant UAW would be asked to cast votes in favor of the plan starting May 31.þþ``It's a good agreement,'' Gettelfinger said. ``When you weigh the alternatives, we have very few options left available.''þþVisteon, which has struggled to turn a profit since its spinoff from Ford in 2000, posted a net loss of $1.5 billion last year. During the first quarter, the parts supplier posted a net loss of $188 million.þþLower sales to Ford -- which cut its second-quarter North American vehicle production by 4.8 percent -- and higher costs for steel and other raw materials including aluminum, copper and resin are hurting the parts maker.þþ``We estimate that removing roughly 30 percent of Visteon's current UAW workforce would represent annual cost savings of $500 million to $600 million,'' Calyon Securities analyst Joseph Amaturo said in a research note.þþ``We believe the actual cost savings to Visteon could be materially higher,'' he added.þþVisteon has been in talks with Ford since last year over broad changes to its business.þþVisteon's stock closed unchanged at $6.27 on Tuesday on the New York Stock Exchange. þþ
Source: NY Times
