Johnson Controls and Yanfeng Automotive Trim Systems Co., Ltd.
announced Tuesday that they have joined together to form the
world’s largest global automotive interiors company.
Yanfeng Automotive Trim Systems is a wholly owned subsidiary of
Huayu Automotive Systems Co., Ltd., the component group of
Shanghai Automotive Industry Corporation. The new joint venture
will be called Yanfeng Automotive Interiors and have revenues of
approximately $8.5 billion with a backlog to reach $10 billion
in the next few years, according to the announcement.
Yanfeng will be the majority shareholder in the company and hold
70 percent of the joint venture, while Milwaukee-based Johnson
Controls will have a 30 percent share. The companies signed a
definitive agreement in May 2014 to form this joint venture,
which is expected to begin operations in July 2015, subject to
receipt of all regulatory approvals.
“Combining our global interiors businesses enhances our ability
to serve our automotive customers throughout the world,” said
Alex Molinaroli, Johnson Controls chairman and chief executive
officer, in a statement. “This will result in an automotive
interiors company with unmatched scale, capabilities and reach.”
The new company will be headquartered in Shanghai with more than
90 manufacturing, global engineering, development and customer
centers in the United States, Europe, China, Japan and India.