Yanfeng and Johnson Controls Comes Together to Form the Biggest Supplier of Automotive Interior Equipments
Published By : 15 Apr 2015 | Published By : QYRESEARCH
A subsidiary of China's biggest car maker, Yanfeng Automotive Trim Systems Co. Ltd. and Johnson Controls Inc. have finalized their deal by signing the agreement to be the world's biggest supplier of automotive interior equipments. One of the units will be based in Shanghai and will attribute US$8.5 billion sales annually. On Tuesday, Yanfeng and Johnson made an announcement about their signing of the agreement. This joint venture still requires a regulatory approval; however, the companies are planning to open its business till July.
Yanfeng which is a subsidiary of Shanghai Automotive Industry Corp. (SAIC) will be holding a stake of 70% in this joint venture, whereas Johnson Controls' share is limited up to 30%. The companies have further announced that the joint venture company will be named as Yanfeng Automotive Interiors.
This venture which was initially announced in the last year is a part of the Glendale-based Johnson Controls' movement to cut down its dependency on the auto industry for further sales. The company has previously sold off its automotive electronics business line and has planned to continue being the leading supplier of car seats and automotive batteries globally. As per Johnson Controls, the new venture’s backlog of succeeding business is anticipated to touch US$10 billion in the coming few years. The Johnson Controls chief executive and chairman, Alex Molinaroli stated that this venture will result in an automotive interiors company bearing unmatched capabilities, scale and reach.
This mentioned deal will affect around thousands of Johnson Controls employees who are working in the auto interiors business line across the globe will now be reporting to a corporate headquarters based in Shanghai. It also means that these employees will be a part of a biggest auto market and rapid growing company in the world.