Ford, Visteon Settle Pricing Dispute

Ford (F Quote) and its former auto parts subsidiary Visteon (VC Quote) agreed to settle a $125 million pricing dispute.

Financial details weren't disclosed, and both companies said in a joint announcement that the settlement wouldn't materially affect their financial outlooks or prior earnings statements. But analysts are figuring the agreement favors Visteon, which had claimed that Ford's demands for price cuts would exceed its reserves by $125 million. The companies are still wrangling over another $50 million in price cuts related to their European operations.

An extra $125 million to $175 million on Ford's purchasing bill, which exceeds $81 billion a year, probably won't have a huge impact on the automaker. Nonetheless, with a multibillion dollar restructuring plan in the works and a fierce price war for market share raging among the Big Three automakers, Ford is trying to cut costs wherever it can. ...