Johnson Controls Inc. announced Tuesday the finalization of an agreement to form a joint venture with Chinese auto supplier Yanfeng Automotive Trims Systems Co. Ltd.
JCI, headquartered in the Milwaukee suburb of Glendale, Wis., with its automotive interiors business based in Plymouth, Mich., will hold a minority stake of 30 percent of the new JV, Yanfeng Automotive Interiors. Yanfeng Automotive Trim Systems is a subsidiary of Huayu Automotive Systems Co. Ltd., which is the parts subsidiary of Shanghai Automotive Industry Corporation (SAIC).
JCI announced the JV in May 2014, after selling its headliner and sun visor business to private equity firm Atlas Holdings LLC in February 2014. Atlas formed a new supplier called Motus Integrated Technologies, headquartered in Holland, Mich., for the former JCI business.
Yanfeng previously established a global base in 2013 when it bought out Visteon Corp.'s former 50 percent stake in its joint venture, Yanfeng Automotive Trim Systems, for $1.25 billion.
The new JV with JCI will be headquartered in Shanghai and says it will be the largest automotive interiors company in the world with revenue of $8.5 billion and a backlog expected to reach $10 billion in the next few years, JCI said in a news release. The JV is expected to begin operations in July.
“Combining our global interiors businesses enhances our ability to serve our automotive customers throughout the world,” Alex Molinaroli, JCI's chairman and CEO, said in a news release. “This will result in an automotive interiors company with unmatched scale, capabilities and reach.”
JCI, which operates battery, auto interiors and commercial building HVAC divisions, reported net income of $1.2 billion in revenue of $42.8 billion in 2014.
