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Visteon Selling European And Brazilian Chassis Business To SSVP II

Manufacturing facilities, assets and employees will be transferred to SSVP II and the operations will be renamed TeDrive.

Visteon Corp. said Thursday that it will sell certain European and Brazilian chassis businesses to Special Situations Venture Partners II L.P. (SSVP II).

Financial terms were not disclosed and the deal is expected to be completed in the second quarter 2007 for Europe and the third quarter for Brazil.

The deal includes Visteon’s chassis operations in Dueren and Wuelfrath, Germany, and Praszka, Poland, as well as other driveline assets in Sao Paulo, Brazil. The facilities involved manufacture driveline and steering systems for global vehicle manufacturers.

“This agreement is an important part of Visteon’s plan to restructure our business, improve our base operations and position the company for growth,” said Don Stebbins, president and COO.

Under the agreement, the manufacturing facilities and associated assets will be transferred to SSVP II and will be renamed TeDrive. The 2,400 Visteon employees currently working in those facilities will also be transferred to the new owners.