Visteon is making the investment through one of its international affiliates. The U.S. supplier did not disclose the terms of the deal and would not identify the international affiliate through which the deal was made.

Jim Fisher, Visteon's director of corporate communications, said the affiliate is not its joint venture Yanfeng Visteon Automotive Trim Systems Co. or any other Chinese company.

But Visteon expects the investment in Wuhu Bonaire, an affiliate of Chinese automaker Chery Automobile Co. to create a stronger relationship with Chery.

The investment no doubt strengthens Visteon's presence in Asia, where the supplier did more than 40 percent of its business last year.

Visteon management and investor analysts also have discussed the supplier's increasing its investment in its South Korea-based joint venture, Halla Climate Control Corp.

Rumors of a possible breakup and sale of the assets of Visteon have been circulating since May, after the company narrowly avoided a proxy fight with one of its largest investors, the Cayman Islands-based Alden Global Distressed Opportunities Master Fund LP. As part of a compromise, the investor was allowed to place two members on Visteon's board.

Visteon is a former Ford Motor Co. parts subsidiary. The supplier of interiors, electronics and lighting is attractive to buyers because its parts are worth more than the company as a whole. For example, analysts say Visteon's stake in Halla and Yanfeng are worth more than the entire company.

Visteon's stock has fallen nearly 30 percent this month, from $61.42 on Aug. 1 to $44.77 in midmorning trading on Aug. 22.