<PAGE>
                                                                   EXHIBIT 10.21

                                SERVICE AGREEMENT



                                     between



                Visteon International Business Development, Inc.
                            728 PARKLANE TOWERS EAST
                               DEARBORN, MI 48126

                  - hereinafter referred to as the "Company" -



                                       and



                             Dr. Heinz Pfannschmidt



                  - hereinafter referred to as the "Director" -


                - jointly hereinafter referred to as "Parties" -



<PAGE>



GENERAL


By resolution of the Board of Directors of Visteon Corporation of Sept. 20, 2001
Dr. Heinz Pfannschmidt has been appointed an officer of Visteon Corporation. The
appointment will become effective on November 1, 2001. With regard to the
advisory services that Dr. Pfannschmidt will render to the Company, the Parties
enter into the following

                               Service Agreement.


SECTION 1 POSITION OF THE DIRECTOR

(1)      The Director has been assigned the title and function of the "President
         Europe and South America". He shall be appointed to the Board of
         Directors and be a statutory representative of the Company.

(2)      The Director will be assigned to Visteon Holdings GmbH, Cologne and
         will render comprehensive management services and other advisory
         services related to the business operations and the entities of Visteon
         Corporation in Europe and South America. He shall render his services
         in accordance with applicable law, the Articles of Incorporation and
         By-laws of the Company and this Advisory Services Agreement, all as
         applicable from time to time.

         The Company may request the Director to assume specific functions and
         positions in entities affiliated with the Company that are incorporated
         in Europe or South America.

(3)      The Director shall always safeguard the interests of the Company. Any
         business relations with suppliers, clients or other business partners
         of the Company must not be used for the personal benefit of the
         Director.

(4)      The Director declares that he is not bound by obligations to provide
         services outside the Visteon group of companies, nor that he is subject
         to non-competition obligations.


SECTION 2 DUTIES AND RESPONSIBILITIES

         The Director shall conduct the business with the diligence of a
         conscientious businessman and shall conscientiously fulfill the
         services pursuant to Section 1 (2) of this Service Agreement.



                                       2
<PAGE>

SECTION 3 FREE DETERMINATION OF WORK PLACE AND TIME AND ADDITIONAL ACTIVITIES

(1)      The Director shall be free to determine where and when he conducts the
         work underlying the services. The place and time for the performance of
         the actual advice shall be agreed among the Parties.

(2)      The Company and the Director can agree that the Director shall, without
         additional compensation, also assume assignments to the Board of
         Directors, the Supervisory Board or similar functions in affiliated
         companies. The same shall apply to honorary functions in associations
         and similar organizations in which the Company participates or is a
         member.

(3)      The assumption of any other paid or unpaid additional activity or
         honorary position including appointments to supervisory boards etc.
         require the prior written approval of the Board of Directors of the
         Company. The approval can be revoked at any time, whereby any
         provisions as to notice periods for termination of an assumed office
         must be taken into consideration.


SECTION 4 SALARY AND FULL COMPENSATION

(1)      The annual base salary shall amount to

                                DM 950,000 gross
             (in words: Deutsche Mark nine hundred fifty thousand).

(2)      The annual base salary shall be paid in thirteen equal installments.
         The 13th monthly salary shall be paid together with the salary for the
         month of November. When joining or leaving during the course of the
         calendar year, the 13th monthly salary shall be paid pro rata temporis.
         This compensation shall cover holiday pay, Christmas bonus and the
         like, as well as any overtime worked. The salary is payable at the end
         of each respective month and shall be transferred to the checking
         account indicated by the Director.

(3)      The base salary and the other compensation and benefits agreed in this
         Service Agreement shall constitute the full and entire compensation of
         the Director for the services rendered under this Agreement.


SECTION 5 VARIABLE COMPENSATION

         The Director will be entitled to participate in Visteon Corporation's
         Long Term Incentive Plans (currently in the form of the Visteon
         Corporation 2000 Incentive Plan), as it exists from time to time. The
         amounts named below are gross amounts and will be payable net of all
         applicable taxes and contributions to social security institutions. The
         Director shall be responsible for the payment of all


                                       3
<PAGE>

         taxes, in particular income tax and contributions to social security
         institutions. The performance targets will be determined by the Board
         of Directors of the Company in accordance with any available
         compensation plans applicable to the Company. They also require the
         approval of Visteon Corporation.

         (a)    Under the Short Term Incentive Opportunity the Director shall be
                eligible for an amount of sixty percent of the annual base
                salary of the Director if the performance targets are reached in
                all respects.

         (b)    Under the Long Term Incentive Plan the Director shall be
                eligible for an incentive opportunity of two hundred percent of
                the annual base salary of the Director if the performance
                targets are reached in all respects. The performance targets
                shall be determined as the achievement of certain financial and
                operational goals for Visteon Corporation and its affiliates
                over a three year period. Fifty percent of the opportunity shall
                be paid out in cash adjusted for performance, and twenty-five
                percent in Visteon Corporation common stock adjusted for
                performance. Twenty-five percent of the opportunity will be
                delivered in options relating to common stock in Visteon
                Corporation.


SECTION 6 RESTRICTED STOCK, STOCK OPTIONS AND STOCK OWNERSHIP

(1)      The Director will be granted, within three months of the commencement
         of this Advisory Services Agreement, 25,000 shares of common stock of
         Visteon Corporation in the form of restricted stock. The restricted
         stock shall not be salable before the fifth anniversary of the
         commencement of this Service Agreement. Further details are set forth
         in the restricted stock plan of Visteon Corporation (currently in the
         form of the Visteon Corporation 2000 Incentive Plan), as it exists from
         time to time. The Director shall be responsible for all taxes, in
         particular income tax, and contributions payable in connection with the
         receipt and sale of the restricted stock.

(2)      The Director will be granted, within three months of the commencement
         of this Service Agreement, stock options relating to 45,000 shares of
         common stock of Visteon Corporation that will vest ratably over a
         three-year period starting with the commencement of this Service
         Agreement. The strike price for these options shall be the average of
         the high and low prices for shares of common stock in Visteon
         Corporation quoted on the New York Stock Exchange on the date this
         Service Agreement commences or on the next following trading day if
         trading does not occur on the commencement date of this agreement.
         Further details are set forth in the stock option plan of Visteon
         Corporation, as it exists from time to time. The Director shall be
         responsible for all taxes, in particular income tax, and contributions
         payable in connection with the receipt and exercise of the stock
         options and the sale of the shares received upon such exercise.



                                       4
<PAGE>


SECTION 7 SIGN-ON BONUS

         The Director will receive, within three months of the commencement of
         this Service Agreement, a sign-on bonus in the amount of the sum of the
         lost bonus from his previous employer and the Visteon target for two
         months of 2001. The amounts named in this Section 7 are gross and will
         be payable net of all applicable taxes and contributions to social
         security institutions. The Director shall be responsible for the
         payment of all taxes, in particular income tax and contributions to
         social security institutions.

         (a)   The lost bonus constitutes the amount that the Director would
               have received as a bonus from his previous employer for the full
               calendar year 2001 had he not terminated his employment with his
               previous employer effective October 31, 2001. The lost bonus for
               the purposes of this Section 7 shall not exceed US$ 350,000
               gross.

         (b)   The Visteon target for the Director for the year 2001 amounts to
               US$ 95,000. For the purposes of this Section 7 the annual target
               is divided by six to obtain the two-months number.


SECTION 8 FLEXIBLE PERQUISITE PLAN

         For each complete calendar year, the Director shall receive
         reimbursement of expenses for financial planning, security, physical
         examination, membership in clubs or for other purposes, and it shall be
         available to the Director during the course of the calendar year as he
         sees fit. Reimbursements will be made up to an amount equivalent to US$
         15,000.00 gross. If the Director either starts or ends his services
         during the course of a calendar year, the amount payable under the
         flexible perquisite plan shall be prorated. The Director shall be
         liable for all taxes, dues and contributions payable for this amount.


SECTION 9 STATUTORY SOCIAL SECURITY CONTRIBUTIONS

         The Company shall pay 50% of the contributions to be made to the
         statutory pension-, unemployment-, health-, and nursing insurance on
         behalf of the Director. To the extent that the Director is not a member
         of a statutory health- or nursing insurance (Pflegeversicherung), the
         Company shall pay the Director 50% of those contributions that would
         otherwise be made to the respective social security carrier.


                                       5
<PAGE>



SECTION 10 GROUP ACCIDENT INSURANCE

         Within the scope of a voluntary casualty insurance program, the Company
         shall take out a casualty insurance (in addition to the statutory
         casualty insurance with the vocational league or Berufsgenossenschaft)
         for following amounts:
<Table>

         <S>                                         <C>
         In case of death                            DM 300,000.00
         Invalidity                                  DM 600,000.00
         Per diem allowance from the 43rd day        DM     100.00
         Medical care (Heilkosten) up to             DM   2,000.00 (secondary)
         Recovery costs up to                        DM   5,000.00.
</Table>

         The insurance coverage shall include any business related or private
         accidents of daily life and shall be applicable anywhere in the world
         at land, at sea, or in the air.

         In the event of death the legal heirs shall be the beneficiaries.
         However, the Director shall be entitled to name a different person as
         beneficiary by submitting a respective declaration to the personnel
         department.

         The Company retains the right to revoke at any time the described
         insurance coverage.

         Taxes due in connection with the monetary advantages based on payment
         of premiums shall be paid as a lump sum. The Company shall charge the
         Director the amount of the taxes paid.

         The insurance coverage shall expire upon termination of this Service
         Agreement.


SECTION 11 LIFE INSURANCE

         The Company shall take out a renewable term insurance policy
         (Risikolebensversicherung) for the event of death of the Director in
         the amount of DM 400,000. The beneficiaries of this insurance policy
         shall be the heirs of the Director.


SECTION 12 COMPANY PENSION SCHEME

         The Director shall receive a company pension.  The terms shall be
         subject to a separate agreement

                                       6
<PAGE>

SECTION 13 COMPANY CAR

         The use of company cars will be provided by Visteon Holdings GmbH under
         its pertinent terms and conditions.


SECTION 14 SALARY PAYMENT IN THE EVENT OF ILLNESS OR DEATH

(1)      In the event of disability for service due to illness
         (krankheitsbedingte Arbeitsunfahigkeit), the Company shall continue to
         pay the Director the monthly salary pursuant to Section 4 for up to six
         weeks. In addition, the Company shall pay the difference between the
         last net monthly salary pursuant to Section 4 and the amount which the
         statutory health insurance pays, or would pay, if the Director had
         statutory health insurance coverage (company health insurance benefits
         or BKK-Krankengeldsatz) for a total period of up to twelve months.

(2)      To the extent that the Director has damage claims towards third party
         for loss of wages due to disability of service, the Director hereby
         assigns such claim to the Company insofar as the Company continues to
         pay his salary or other benefits in money's worth and to make
         contributions to the social security carrier and other third parties in
         accordance with this Agreement. The Director shall immediately provide
         the Company with the information which is necessary for the assertion
         of the claim.

(3)      In the event of death, the dependants (widow and children entitled to
         support) shall receive the full salary for the month of death and the
         three subsequent months.


SECTION 15 DATA STORAGE

         The Director agrees that his personal data is stored and processed in
         accordance with statutory provisions.


SECTION 16 NON-COMPETE

         During the term of this Service Agreement, the Director shall not be
         allowed to act as a self-employed entrepreneur, an employee or in any
         other way for or on behalf of a direct or indirect competitor of the
         Company. Furthermore, the Director shall not be allowed to establish or
         to acquire such a competitor or to directly or indirectly participate
         in such a competing company.

                                       7
<PAGE>

SECTION 17 RETURN OF DOCUMENTS

(1)      At the termination of this Service Agreement, or in the event of a
         release of the Director from his duties, the Director is obliged to
         immediately and fully return to the Company all items of property and
         documents that relate to the Company. This shall apply, in particular,
         to keys, books, data-carriers, printed items of any kind, documentation
         or drafts as well as extracts or copies thereof. The Director shall
         have no right of retention with respect to these items and documents.

(2)      All aforementioned items shall remain, or become at the time of
         creation, the property of the Company.


SECTION 18 INVENTIONS

(1)      The Director transfers to the Company in advance all patentable or
         other inventions, developments, and industrial property rights eligible
         for protection made or acquired by him during the term of this Service
         Agreement. To the extent that such transfer cannot be made in advance,
         the Director is under the obligation to make such transfers as soon as
         possible. These obligations shall apply to domestic, foreign, and
         international rights.

(2)      The Company shall be obliged to register the inventions of the
         Director and to inform the Director of such registration.

(3)      The Director receives no special compensation. The compensation for the
         transfer of these rights pursuant to subsection (1) is included in the
         compensation stipulated in this Agreement.


SECTION 19 TERM

(1)      This Service Agreement shall become effective on November 1, 2001.

(2)      This Service Agreement ends automatically at the respective times
         stated in the cases listed below without requiring a special
         termination notice:

         (a)    upon expiration of the time period for which the Director has
                been appointed an officer of Visteon Corporation;

         (b)    upon resignation from the appointment as an officer of Visteon
                Corporation; and

         (c)    when the Managing Director-Service Agreement between the
                Director and Visteon Holdings GmbH ends.


                                       8
<PAGE>

(3)      In addition, the Service Agreement may be terminated by either side (i)
         within the first 12 months of this Agreement with a notice period of 36
         months, and (ii) after expiry of the first 12 months with a notice
         period of 24 months.

         Upon declaration of termination of this Service Agreement or upon
         declaration of termination of the Managing Director-Service Agreement
         between the Director and Visteon Holdings GmbH, the Director may demand
         that the payments payable to him under this Service Agreement during
         the notice period are settled by payment of a singular amount. This
         singular amount shall consist of the sum of all individual amounts
         after they have been discounted. In the event of termination after the
         expiry of the first 12 months of this Agreement, the Managing Director
         may also demand that the payments due to him be distributed evenly over
         a period of 36 months. Such distribution shall not otherwise constitute
         an extension of this Agreement.

(4)      The appointment of the Director as an officer of Visteon Corporation
         can be revoked by Visteon Corporation at any time. The revocation of
         the appointment shall constitute a termination of this Service
         Agreement by the Company with the notice period stated in subsection
         (3) above.


SECTION 20 CONFIDENTIALITY

         For the duration of this Service Agreement and thereafter the Director
         shall be obliged to treat as confidential all information or data
         relating to the Company, or any of its affiliated companies, of which
         he becomes aware and shall not to disclose any documents concerning the
         Companies, or any of its affiliated companies, either himself or
         through third parties. This refers specifically to business and
         operational secrets, know-how, information, designs, manufacturing
         processes, formulas, patents, and improvements as well as financial
         information and customer lists that concern the business activities or
         products of the Company or of its affiliated companies. The same
         obligations shall apply with regard to any predecessors in business,
         suppliers, agents, distributors or customers.


SECTION 21 POST-CONTRACTUAL NON-COMPETE

(1)      For a duration of two years following the termination of the Service
         Agreement, the Director agrees not to work for a company that competes
         with the Company, or a company affiliated with the Company (competing
         company or Konkurrenzunternehmen). Free-lancing or consulting
         activities shall also not be permissible. The non-compete obligation
         shall not apply if the Service Agreement terminates due to permanent
         disability (dauernde Arbeitsunfahigkeit). The Company may, at any time,
         waive the non-compete obligation with a notice period of three months.


                                       9
<PAGE>

(2)      The Company shall pay the Director a compensation for the duration of
         the non-compete obligation in the amount of 50% of the salary pursuant
         to Section 4.

(3)      If the non-compete obligation is breached, the Company shall be under
         no obligation to pay the compensation.


SECTION 22 FINAL PROVISIONS

(1)      This Service Agreement is agreed under the condition precedent that the
         Managing Director-Service Agreement between the Director and Visteon
         Holdings GmbH has been duly executed and has come into full force and
         effect.

(2)      Furthermore, the Director agrees to inform the Company without delay of
         any change of residence. In this respect all legal acts of the Company
         shall be deemed as having been validly effected, if they have been made
         under the address last notified by the Director.

(3)      Changes or amendments of this Service Agreement require written form.

(4)      If individual provisions of this Service Agreement or parts of
         provisions of this Service Agreement are or become void, the validity
         of the other provisions of this Agreement shall not be affected
         thereby. The void provision shall be replaced by a legal provision
         which comes as close as possible to the economic and legal rationale of
         the void provision. The same shall apply accordingly to gaps in this
         Agreement.

(5)      Claims arising under this Service Agreement are to be made within a
         period of six months after they become due. Otherwise these claims
         shall be excluded.

(6)      This contract will be exclusively governed by Michigan law.



Dearborn, October 23, 2001                          Bargum, October 23, 2001


For the Company


/s/ Robert Marcin                                   /s/ Dr. Heinz Pfannschmidt
-----------------                                   --------------------------
Robert Marcin                                       Dr. Heinz Pfannschmidt



                                       10