Visteon to sell radar business to Autoliv

Visteon is seeking to sell technology that helps drivers avoid accidents to prevent the auto-parts maker from being sideswiped by customers demanding cost savings.

Visteon has struck a deal to sell its Radar System Business to fellow auto supplier Autoliv Inc. for $1.9 million, pending bankruptcy court approval.

That unit provides parts for blind-spot detection devices used in Chrysler Group LLC and Honda Motor Co. vehicles.

Those auto makers demanded that Visteon sell the technology because the Michigan parts maker could not cut the cost of the product.

Visteon works jointly with Autoliv to make the devices. Finding cost savings should be easier with the entire operation under one company, Visteon said in court papers.

Selling the radar unit to Autoliv is a requirement of an accommodation agreement with Chrysler that provided more than $26 million to Visteon last year.

Visteon will seek approval to sell the unit at a court hearing scheduled for Jan. 21.

The blind-spot detection technology flashes a light on a side-view mirror when another vehicle is traveling in a driver’s blind spot and sounds a warning when a driver may collide when another vehicle when changing lanes. The devices use tiny radar detectors hidden behind a rear bumper to locate nearby vehicles.

Courtesy: WSJ.

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