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NEW YORK (CNN/Money) -
Troubled auto parts maker Visteon Corp. is reported close to a deal to sell or return as many as 15 of its U.S. plants back to former parent corporation Ford Motor Co., according to a published report Friday.
The Wall Street Journal said that negotiations with the United Auto Workers union is a key to a possible deal. Under the plan being discussed, Visteon (Research) would be transferring the bulk of its UAW-represented factories to a new company or to Ford (Research), according to the report.
Shares of Visteon gained $1.24, or almost a third, to $5.06, after a late afternoon report Thursday on the possible deal. On Friday, the stock climbed 15.8%, to 5.86, on the news.
Thursday, Ford shares gained 9 cents to $10.01, but was down slightly, to 9.97, in early trading Friday.
Visteon has about 70,000 employees worldwide, including 17,000 U.S. employees represented by the union. Those UAW members still earn wages in line with the pay and benefits earned by union members at Ford, which put the company's costs significantly above that of competitors, even though their employees are also represented by the UAW.
On May 10, Visteon warned that without a significant restructuring agreement with Ford, the company wouldn't be able to cover debt payments and capital spending. It said at that time that recent discussions with Ford have been constructive and are progressing.
The paper said Visteon spokesmen could not be reached for comment while a Ford spokesperson told the paper, "we remain focused on the talks and coming to an agreement with Visteon that's beneficial to both of us."
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