Johnson Controls Inc. and Yanfeng Automotive Trim Systems Co., Ltd. have agreed to form an automotive interiors joint venture.
This agreement “will create the largest automotive interiors company in the world with revenues of approximately $7.5 billion,” Glendale-based Johnson Controls said in a press release.
Johnson Controls will have a 30 percent share in the joint venture. Yanfeng will hold the majority 70 percent share.
“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,” said Alex Molinaroli, Johnson Controls chairman and chief executive officer. “It creates a strong combined company with a market leading position and a foundation for sustained global growth. This also aligns with Johnson Controls’ corporate commitment to China, which is increasingly becoming a major center for the global automotive industry.”
The new venture will be headquartered in Shanghai, with global engineering, development and customer centers in the United States, Europe, China, Japan and India.
The agreement is a noncash transaction comprised of asset contributions by the two parties, is subject to limited conditions and is expected to close in the first half of 2015.
Yanfeng is a subsidiary of Huayu Automotive Systems Co., Ltd., which is the component group of Shanghai Automotive Industry Corp., a state-owned company.