Chrysler to pay Visteon $31 million, move business

Posted on Tuesday, October 6th, 2009 at 11:47 AM EDT.

Chrysler Group will pay Visteon Corp. at least $31.3 million as part of an agreement to shift some business away from the bankrupt supplier and give Visteon some new business, court documents say and the Automotive News reported.

The payments to Visteon include compensation for already-completed parts and for tools used to make components in Chrysler vehicles, according to an agreement filed last week in U.S. Bankruptcy Court, the trade publication said.

The automaker also will pay Visteon every 15 days and cover Visteon’s cost of winding down operations that make parts for Chrysler interiors, the Automotive News said. Visteon no longer views those operations as beneficial, the court documents say.

Under the agreement, Chrysler will buy equipment at Visteon’s plants in Saltillo, Mexico, and Highland Park, Mich., a Visteon spokesperson told the publication. Chrysler may sell that equipment to another supplier, who would presumably take over those factories, which Visteon leases. If Chrysler can’t find a buyer by March 31, 2010, the automaker will assume ownership of the equipment, the paper reported. (Automotive News)

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