Johnson Controls finalizes joint venture with Yanfeng Automotive
Glendale-based Johnson Controls Inc. announced on Friday that its global automotive interiors joint venture with Yanfeng Automotive Trim Systems Co. Ltd. is officially complete.
Johnson Controls said the agreement will create the largest automotive interiors company in the world with revenues of approximately $7.5 billion. 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, in May 2014 when the plans were first announced. “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 and is subject to limited conditions.
Yanfeng is a subsidiary of Huayu Automotive Systems Co. Ltd., which is the component group of Shanghai Automotive Industry Corp., a state-owned company.