Johnson Controls, a Tier 1 automotive supplier with extensive facilities in Plymouth Township, is forming a joint venture devoted to automotive interiors with Yanfeng Automotive Trim Systems Co., a wholly owned subsidiary of Huayu Automotive Systems Co., the component group of Shanghai Automotive Industry Corp.
Johnson Control officials say the partnership will create the largest automotive interiors company in the world, with combined revenue of approximately $7.5 billion. Yanfeng will have a 70 percent stake in the new company, with Johnson Controls claiming the remaining 30 percent.
“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,” says Alex Molinaroli, chairman and CEO of Johnson Controls. “It creates a strong combined company with a market leading position and a foundation for sustained global growth.”
The new company — which will manufacture instrument panels, cockpit systems, door panels, and floor consoles — will be headquartered in Shanghai with global engineering, development, and customer centers in the United States, Europe, China, Japan, and India.
“This (venture) also aligns with Johnson Controls’ corporate commitment to China, which is increasingly becoming a major center for the global automotive industry,” Molinaroli says.
The transaction is expected to be completed next year.