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Visteon plans to shed vehicle interiors business

Visteon plans to shed vehicle interiors business

Visteon Corp. has tentatively agreed to transfer most of its vehicle interiors business to a joint venture that it has in China with Huayu Automotive Systems Co. Ltd., the companies said Wednesday.
The auto supplier said Wednesday that it has signed a memorandum of understanding with the joint venture, which is known as Yanfeng Visteon Automotive Trim Systems Co. Ltd., that sets forth some basic terms of the proposed transaction. Financial terms were not disclosed.
The deal would create a global interiors company within the joint venture with estimated annual revenue of about $4 billion.
The two sides said they expect to sign sale agreements, which would be subject to regulatory and other approvals, early next year.
Visteon said the deal would broaden its partnership with Huayu Automotive Systems and is expected to boost the joint venture's global manufacturing and engineering presence.
Visteon shares rose $3.02, or 5.8 percent, to $55.49 in midday trading Wednesday.