Yanfeng Automotive Interiors, a joint venture between Huayu Automotive Systems (HASCO) subsidiary Yanfeng Automotive Trim Systems and Johnson Controls (JCI), has been launched.
HASCO is the components subsidiary of Chinese automaker Shanghai Automotive (SAIC) and the new JV is claimed to be is the world’s largest automotive interiors parts supplier. JCI has a 30% stake in the new company, based in Shanghai, which expects initial annual revenue of US$8.5bn and started with an order book worth $10bn.
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“Combining two outstanding global automotive interiors businesses enhances our ability to serve customers throughout the world,” said Alex Molinaroli, CEO of Johnson Controls. “Yanfeng Automotive Interiors will have unmatched scale and reach in the industry with the talents of 28,000 dedicated employees globally.”
The new company will have more than 90 manufacturing, development, engineering and customer service locations worldwide. Products include instrument panels and cockpit systems, door panels, floor and overhead consoles.
The decision to spin off its interiors business into a joint venture is one in a series of strategic actions taken by Johnson Controls to “strengthen and rebalance its portfolio of operating businesses”, the supplier said in a statement.
