Glendale-based global diversified industrial company Johnson Controls Inc. announced on Thursday the formal launch of Yanfeng Automotive Interiors. It is a joint venture between Yanfeng Automotive Trim Systems Co. Ltd., a wholly owned subsidiary of Huayu Automotive Systems Co. Ltd. (HASCO), which is the component group of Shanghai Automotive Industry Corporation (SAIC) and Johnson Controls.
Yanfeng Automotive Interiors is the world’s largest automotive interiors parts supplier with Johnson Controls, having a 30 percent share of the company that will be headquartered in Shanghai. The new company will have revenues of $8.5 billion and an order backlog of $10 billion.
“Combining two outstanding global automotive interiors businesses enhances our ability to serve customers throughout the world,” said Alex Molinaroli, chief executive officer of Johnson Controls. “Yanfeng Automotive Interiors will have unmatched scale and reach in the industry with the talents of 28,000 dedicated employees globally.”
The new company will have more than 90 manufacturing, development, engineering and customer service locations around the world. The product portfolio will include instrument panels and cockpit systems, door panels, floor consoles and overhead consoles.
Johnson Controls said the decision to spin off its interiors business into a joint venture is one in a series of strategic actions taken by the company to strengthen and rebalance its portfolio of operating businesses.
Johnson Controls has 170,000 employees serving customers in more than 150 countries. It makes products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid batteries and advanced batteries for hybrid and electric vehicles; and interior systems for automobiles.