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Visteon to slash benefits: report
Newspaper says the auto parts maker will cut health and life insurance for thousands of retirees.
June 30, 2005: 8:46 AM EDT

NEW YORK (CNN/Money) - Visteon Corp., the auto parts provider, plans deep cuts to retirement health coverage and life insurance benefits for thousands of salaried workers, according to the Detroit News Thursday.

The cutbacks could impact about 6,700 white-collar workers, the paper said.

According to the paper, salaried workers who retire on or after June 1, 2007 will no longer receive company-subsidized health insurance.

As many as 4,300 employees will be forced to pay 100 percent of their health care premiums after retirement.

Workers closer to retirement will receive credits to defray the cost of health care.

Visteon (Research) will also discontinue its life insurance program for all those who retire after the cut-off date, but employees will be eligible for group-rate discounts, the paper said.

Current salaried retirees and those who retire before June 1, 2007 will not be affected.

Over 1,000 high-seniority workers are exempt because they are guaranteed the same level of benefits as employees at Ford (Research), which owned Visteon until 2000.

"We must be positioned competitively to address the challenges of a global market and a tough business environment," Visteon Chairman and CEO Mike Johnston said in a letter to employees.

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