Johnson Controls said on Wednesday (10 June) it was exploring “strategic options for the separation of its automotive business”.

The company operates business units specialising in automotive interior parts, batteries and building equipment.

“Today’s announcement continues our strategy of proactive portfolio management to drive focus on strategic product-oriented businesses where we can be a global market leader, drive more profitable growth and deliver maximum long-term value for our customers and shareholders,” said chairman and CEO Alex Molinaroli in a statement.

A new management system is expected to yield US$2bn in incremental segment income by 2020 through operational effectiveness and increased speed to market, the statement added.

The supplier said it had no specific timetable for the completion of the strategic review which includes a full range of options for the automotive business.

At automotive OEMs and Tier 1 suppliers, interest in M&A seems to have accelerated recently. FCA chief Sergio Marchionne has said that more consolidation is needed among automakers to raise efficiency.

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In JCI’s supplier sector, too, future industrial consolidation is a hot topic. Besides the recent completion of ZF’s takeover of TRW, Delphi’s head said recently the company is ready to make a major acquisition this year.

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