confirmed Friday that it will spin off auto parts subsidiary
in its entirety to shareholders.
The Dearborn, Mich.-based automaker, No. 2 behind
, will distribute Visteon to Ford common and class B shareholders based on the number of Ford shares they own and the total number of Ford shares outstanding on the distribution record date.
The distribution ratio will be announced after the record date and the distribution is expected to take place during the summer. The record and distribution dates will be established after the
Securities and Exchange Commission
clears Visteon's registration statement, which will be filed Friday.
Visteon is the second-largest auto parts maker in the world -- behind
, a GM spinoff -- with operations in 21 countries. Ford accounts for more than 90% of Visteon's sales. Launched in September 1997, the company recorded revenue of $19.4 billion in 1999.
Visteon's core strengths, like systems integration and electronics capabilities, lie where the industry is moving," said Bill Ford, chairman of Ford, in a statement.
The company also announced two other moves: a plan to offer current Ford shareholders new shares of Ford plus either $20 cash per share or new Ford shares of equivalent value, as well as a plan to expand its aluminum castings joint venture with
to include Ford's Windsor Aluminum and Essex Aluminum plants.
Shares of Ford closed down 1 1/4, or 2%, at 53 3/16 Friday.