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Visteon Automotive Systems Continues Global Expansion

27 May 1998

Visteon Automotive Systems Continues Global Expansion With Two Acquisitions in Poland

    DEARBORN, Mich., May 27 -- Visteon Automotive Systems
announced today that it has acquired two automotive component companies in
Poland as part of its global growth strategy.
    The two companies -- Pol-Mot Praszka in Praszka, Poland and Pol-Mot ZEM in
Duszniki Zdroj, Poland -- will help Visteon pursue new business opportunities
in Central and Eastern Europe.
    The companies were acquired from Pol-Mot Holding in Warsaw and will be
renamed Visteon Poland SA and Visteon ZEM SA respectively.
    Visteon Poland SA has 1,620 employees and produces air brakes, coil
springs, oil and water pumps, and aluminum castings.  Visteon ZEM SA has 620
employees and manufactures wiper systems and cooling and blower system motors.
    The acquisitions form a key part of Visteon's growth strategy in meeting
its objective to become the world's leading automotive supplier.  Visteon, an
enterprise of Ford Motor Company , is targeting 20 percent of its
growth from non-Ford business.
    "These two companies offer Visteon an excellent base to grow its business
in Central and Eastern Europe and create export opportunities into Western
Europe", said John Kill, European Operations Director, Visteon.  "Our new
operations in Poland will enhance the relationships Visteon has with vehicle
manufacturers in the region, and provide additional business opportunities.
    "They will offer a local high quality supply base for the increasing
number of Western automotive companies who are moving into Central and Eastern
Europe," he added. "The two Polish plants will also provide a highly
competitive production base ideally located for exports to Western Europe."
    Visteon plans substantial site, equipment, and training investments at the
two facilities to support its regional business objectives.
    "Both companies have a proven record for quality, a highly skilled
workforce and an established customer base, which provide immediate benefits
to Visteon's strategy for the region," Kill said.  "Visteon has strong
confidence in the long term economic prospects for the region and we are
certain that our new venture will make an important contribution to that
economic development."
    Visteon already has two major manufacturing operations in Central Europe.
The Alba Plant in Szekesfehevar in Hungary opened in 1991.  It has more than
1,300 employees who manufacture ignition coils, fuel pumps, starter motors,
air fuel charger assemblies and fuel delivery modules.  Autopal in Novy Jicin
in the Czech Republic was acquired in 1993.  With 3,200 employees, Autopal
produces lighting and climate control equipment.
    Visteon has 80,000 employees located in 78 plants, including 32 joint
venture facilities and  33 sales offices, along with engineering and technical
centers in 20 countries around the world.