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Ford may spin off Visteon
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October 1, 1999: 6:29 a.m. ET
Report: Automaker to give wage, job guarantees for auto parts unit
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NEW YORK (CNNfn) - Ford Motor Co. will spin off its auto parts unit to shareholders, and will give job and wage guarantees to workers in the unit under a new United Auto Workers contract, according to a report published Friday.
The New York Times, citing sources close to the situation, said the nation's no. 2 automaker had considered selling the Visteon Automotive Systems unit to Lear Corp. or to Delphi Automotive Systems Inc. -- which itself was spun off this May from General Motors Corp.
But the Times said Ford's contract crunch with the UAW has made a direct spin-off to shareholders more plausible and tax-smart.
Visteon had some $17.8 billion in revenue last year.
Labor contracts for 400,000 workers at Ford (F), GM (GM), and DaimlerChrysler (DCX) were due to expire Sept. 14. The UAW has since come to definitive agreements with GM and DaimlerChrysler. Both four-year contracts call for annual raises of 3 percent a year per union worker after adjustments for inflation, as well as a boost in pension benefits and a $1,350 sign-on bonus for new employees.
Ford (F) and the UAW continue to negotiate a new contract.
Ford closed Thursday at 50-1/4, up 5/8. 
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