The world’s second largest auto parts giant Visteon (NYSE:VC) has lost money. In the first half of this year, Visteon’s net profit was US$5.3 million, compared with a loss of US$1.401 billion in the same period last year.
The main reason for Visteon’s turning losses was not an increase in sales revenue, but a significant reduction in structural adjustment expenditures. In the first half of this year, Visteon’s sales revenue was 5.679 billion U.S. dollars, which was far lower than the sales revenue of 9.99 billion U.S. dollars in the first half of last year. However, its structural adjustment expenditure this year was only 22 million U.S. dollars, compared with 1.176 billion U.S. dollars in the same period of last year.
As Visteon’s global customers, General Motors and Ford Motor Co., have reduced their US and European market expenses due to financial issues, Visteon began to shift the battlefield to emerging markets such as China. In the field of automotive air conditioners, interiors and electronic systems, Visteon has successively established parts and components companies with Shanghai Automotive Industry Corporation (Group) Corporation and Changan Automobile (Group). At present, Visteon has invested more than 20 companies.
In addition, Visteon took a market-based approach to get closer to the Chinese market to strengthen its close ties with its Chinese partners. Recently, through a survey, Visteon learned about the new needs of Chinese car owners and plans to develop new entertainment systems that are more suitable for the Chinese market. Chinese car owners drive an average of 2.5 hours a day, and therefore attach great importance to the car's audio entertainment systems and preferences. Support MP3 technology entertainment system.
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