Benefits January 14, 2009

Visteon Suspends 401(k) Match

January 14, 2009 (PLANSPONSOR.com) - Auto-parts supplier Visteon Corp. announced it would suspend its 401(k) match as well as its salary increases in the face of slumping sales.
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A Dow Jones news report said Visteon expects product sales for the quarter to be about $1.55 billion, a 43% drop from a year ago, amid lower vehicle production by Visteon’s global customers.

Visteon said it is on track to complete its 800 global job cuts, which were first announced in October, by the end of the first quarter, with annual savings of $60 million expected upon completion.

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According to the Dow Jones story, the company will adopt a four-day workweek for about 2,000 of its employees, along with a 20% salary cutback.

Visteon has been working with the Pension Benefit Guaranty Corporation (PBGC) in protecting pension benefits for former employees of now-shuttered facilities (see Visteon Reaches Agreement with PBGC on Pension Protections ).

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