Johnson Controls and Yanfeng Automotive Trim Systems Co. Ltd., a wholly owned subsidiary of Huayu Automotive Systems Co. Ltd., the component group of Shanghai Automotive Industry Corporation, announced the signing of the agreement for a global automotive interiors joint venture.
The new joint venture, Yanfeng Automotive Interiors, will be the largest automotive interiors company in the world, with revenues of about $8.5 billion with a backlog to reach $10 billion in the next few years.
Yanfeng will hold the majority 70-percent share in the joint venture, and Johnson Controls will have a 30-percent share.
The companies signed a definitive agreement in May 2014 to form this joint venture, which is expected to begin operations in July 2015, subject to receipt of all regulatory approvals.
The new company will be headquartered in Shanghai with more than 90 manufacturing, global engineering, development and customer centers in the United States, Europe, China, Japan and India. The product portfolio will include instrument panels and cockpit systems, door panels, floor consoles and overhead consoles.
The interiors joint venture agreement is the latest in a series of recent strategic transactions taken by the company to both strengthen and rebalance its portfolio of operating businesses.