Canadian Plastics

Johnson Controls to spin-off auto parts businesses

Part of the company’s plan to focus on building efficiency and automotive battery operations.

July 27, 2015   Canadian Plastics

Johnson Controls Inc. – said to be the world’s largest automotive seat maker – will spin off its auto parts businesses to form a separate public company.

The move is part of Milwaukee, Wis.-based Johnson Controls’ plan to exit the automotive seating and interiors businesses to focus on its higher-margin building efficiency and automotive battery operations – a plan announced by the company last month.

The new entity, which will debut in about a year, will include Johnson Controls’ car seating lines and its share of an auto interiors venture with China’s Yanfeng Automotive Trim Systems Co. Shares in the new company will be distributed to Johnson Controls shareholders as part of the tax-free strategy.

Bruce McDonald, vice chairman and executive vice president of Johnson Controls, will lead the new company. Automotive experience generated US$22 billion of revenue last year, more than half of the company’s sales. The bulk of the auto revenue came from seating, where Johnson Controls is said to control nearly one-third of the US$60 billion-a-year global seating market.


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