Ford CFO: We Will Treat Visteon As A Standalone Company

Ford Motor Co. (F) will treat Visteon Corp. (VC) as a "standalone company", raising the possibility that the supplier won't receive any financial assistance from its former parent.

Chief Financial Officer Lewis Booth said the auto maker is more than willing to work with Visteon but the struggling company won't receive any special treatment above any other supplier. Booth made the comments on a conference call to discuss Ford's earnings. Visteon has reportedly hired legal and financial advisers to prepare for possible bankruptcy proceedings, according to the Wall Street Journal, citing people familiar with the matter. The hirings don't mean a bankruptcy filing is imminent, the people said.

Visteon, which now trades below 20 cents, has been hit as auto makers, including Ford, have reduced their output amid slumping sales around the world. The company ended 2008 with $1.2 billion in cash and has taken to freezing salaries and slashing jobs to control costs. The company has been restructuring for the past four years after Ford bailed out the company, which included taking back some its plants.

Visteon shares fell 1.9% to 16 cents in earlier trading while Ford shares fell 2% to $1.99.

-By Jeff Bennett, Dow Jones Newswires; [phone]; [e-mail]

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