Diversified technology supplier Johnson Controls Inc. (JCI) and Yanfeng Automotive Trim Systems Co. Ltd. are forming a global joint venture that is said by the companies to be the “largest automotive interiors company in the world”, with revenues of approximately US$7.5 billion
Yanfeng Automotive is a wholly owned subsidiary of Huayu Automotive Systems Co., Ltd. (HASCO), the component group of Shanghai Automotive Industry Corporation (SAIC).
“Joining our two interiors businesses is a natural extension of our already very successful existing partnership with Yanfeng in automotive seating, which has flourished over the past 15 years. It creates a strong combined company with a market leading position and a foundation for sustained global growth," said Alex Molinaroli, Johnson Controls chairman and CEO of Glendale, Wis.-based JCI. "This also aligns with Johnson Controls' corporate commitment to China, which is increasingly becoming a major center for the global automotive industry."
The new company will be headquartered in Shanghai with global engineering, development, and customer centres in the U.S., Europe, China, Japan and India.
The product portfolio will include instrument panels and cockpit systems, door panels, and floor consoles.
The transaction is expected to close in the first half of 2015.