HOLLAND, MI - Visteon Corp. announced it will close its operations in Holland by the end of this year, a move that will end local employment for 240 workers, some of whom will be laid off while others will be moved to a Detroit-area plant
The global automotive supplier said it expects to retain about 175 employees from Holland by offering them positions in product development and engineering at its corporate offices and innovation center in Van Buren Township, about 23 miles southwest of Detroit.
"While both facilities offer premier services, we can be more responsive to customers, and drive improved quality and growth, by consolidating and simplifying our U.S. footprint in close proximity to vehicle manufacturers, as we have done in other regions," said Matthew Cole, Visteon senior director of engineering in a statement.
"People are disappointed but not surprised," said an employee working at the Visteon facility at 918 E. 32nd Street. "People kind of expected some aspects of it with two technical centers so close to each other."
Severance packages were not detailed, but employees were told they would be rewarded for staying with the company until the operations closed, said the employee, who asked not to be identified.
Visteon executives told employees they do not expect to eliminate any positions in Holland before Sept. 1. Employees will meet individually with human resources representatives this week to begin discussing their plans, they said.
"The company wants to give employees as much time as possible to pursue internal positions, plan for their futures and help ensure a smooth transition," the Visteon statement said.
"We recognize the impact on the workforce in Holland and the local community, and we are committed to supporting our employees as we work through this transition," Cole said.
"We have a talented and experienced workforce in Holland; we hope that many current Holland employees will remain with Visteon as we relocate these positions."
Visteon's Holland technical center was acquired from Johnson Controls Inc. (JCI) in July 2014 for $264 million. Visteon was created in 2000 as a spinoff of Ford Motor Co. in 2000.
The Holland Visteon technical group occupies about 100,000 square feet of leased space in the facility that was originally created by Prince Corp., the predecessor to JCI in Holland.
Visteon's acquisition was part of JCI's breakup of its automotive business, which also resulted in the sale of its Homelink division to Gentex Corp, its sun visor business to Atlas Holdings, a private equity firm and a joint venture with Yanfeng Automotive, a Chinese firm that makes automotive interiors.
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Jim Harger covers business for MLive/Grand Rapids Press. Email him at jharger@mlive.com or follow him on Twitter or Facebook or Google+.