Visteon Chapter 11 Bankruptcy: hit by Chrysler closings

Visteon Corp., who was a former division of the Ford Motor Co., has confirmed that they have filed for Chapter 11 Bankruptcy protection. Visteon was one of the country’s largest auto suppliers, but the automaker has been hit hard by the Chrysler dealership closings.

The cause behind the closing has been blamed on cutbacks from automakers; this had a direct result on Visteon’s financial stability. This bankruptcy now makes the company just one of many casualty in the U.S. auto industry, as they have all felt the ripples from the Chrysler LLC bankruptcy and the imminent bankruptcy filing by GM.

The Wall Street Journal explains that a Visteon bankruptcy filing is not good for the troubled U.S. auto industry as it could make things very difficult for Ford, who is the only Detroit automaker not to ask for government aid. Visteon has no financing lined up from banks; this means that they will rely on cash from Ford and other auto companies.