Visteon or sales of lighting business to Indian parts company

According to Bloomberg News, informed sources have revealed that Visteon plans to sell automotive lighting business and recently negotiated with India's Varroc Group.

Informed sources also revealed that the two parties may reach an agreement at the end of this month, but it is also possible that the negotiations will be broken. Visteon sells its automotive lighting business at a price of approximately $75 million to $100 million, and the net value of the business is $150 million. Therefore, the sale of this business will bring book losses to Visteon.

India's Varroc Group is headquartered in Aurangabad, India and supplies parts to passenger cars, commercial vehicles and motorcycles. Customers include Honda, Yamaha, Fiat, GM, Caterpillar and Visteon.

Visteon Automotive Lighting's operating revenue in 2010 was US$456 million, of which 81% came from North America and Europe. The gross profit margin of this business was only 2.6%.