Visteon or other Asian auto parts companies acquire targets

According to an Autonews website report, analysts recently stated that Visteon Corp., which had emerged from bankruptcy protection last year, may have become the acquisition target of other auto parts suppliers because it can increase its visibility in Asia.

Evan Man, an analyst at Gimme Credit, said in an investigation note that Visteon is on the road to recovery. After the company pursues independent development and increases production, the company's mid-term operating margin will increase. But we also see Visteon as a potential target for acquisition because it is an international automotive parts supplier that provides air conditioners, power supplies, and lighting systems to automakers, and it can be enhanced in Asia, especially in China. Popularity. '

Asia is the fastest growing region in the global industrial and automotive industry, and auto parts suppliers are also seeking to expand their business in Asia. At present, China has surpassed the United States as the world's largest auto market. Vizzone’s chief financial officer, Bill Quigley, said at a meeting on June 15 that 'Asia will continue to dominate global car production. 'Visteon has a 50% stake in Yanfeng Visteon Automotive Trim Systems Co., Ltd. and owns 70% of the shares of Halla Climate in South Korea. Some analysts had expected Visteon to acquire the remaining 30%. Last year, regionally speaking, 41% of Visteon’s sales came from Asia. From the company’s perspective, 29% of sales came from the rapidly growing South Korean Hyundai Motor Company. Visteon’s other major customer is Ford Motors of the United States. Sales from Ford account for a quarter of the company’s sales. In the first quarter of this year, Visteon made a profit of 300 million U.S. dollars in new businesses, most of which came from Asia.

Visteon shares fell 2.8% to 63.42 US dollars at the close of the 27th.

Analysts have pointed out in recent weeks that Visteon may sell part of its business. In the June 8 investigation report, JP Morgan analyst Patan (Himanshu Patel) said that Visteon may sell internal businesses, such as those struggling in Europe and thriving in China. Visteon may sell Yanfeng’s shares it holds to cash in for $2.3 billion. Bidders may include Johnson Controls, LearCorp and French component manufacturer Faurecia.

Patel and UBS analyst Colin Langan said Visteon may also consider selling its lighting business. Visteon entered bankruptcy protection in May 2009. Last year, the company sold and shut down its underperforming factories and eventually emerged from bankruptcy protection.