Johnson Controls, a global multi-industrial company, and Yanfeng Automotive Trim Systems Co., Ltd., a wholly owned subsidiary of Huayu Automotive Systems Co., Ltd. (HASCO), announced the signing of a definitive agreement to form a global automotive interiors joint venture. The agreement is a noncash transaction comprised of asset contributions by the two parties that will create the largest automotive interiors company in the world with revenues of approximately $7.5 billion. Yanfeng will hold the majority 70% share in the joint venture, and Johnson Controls will have a 30% share.
"Joining our two interiors businesses is a natural extension of our already very successful existing partnership with Yenfang 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."