Visteon and Huayu Automotive Systems Co (Hasco) say the companies’ existing China joint venture, Yanfeng Visteon Automotive Trim Systems (YFV) and Visteon, have signed a non-binding memorandum of understanding (MoU) that would combine the majority of Visteon’s global interiors business with YFV.

Definitive agreements for the proposed sale, which would be subject to regulatory and other approvals, are targeted to be signed in early 2012. Other terms were not disclosed.

The transaction, once completed, will result in a global interiors company within YFV with estimated annual revenue of around US$4bn, serving more than 30 customers from more than 60 facilities in 16 countries.

“Visteon is very pleased that the signing of the MoU takes our longstanding joint venture with Hasco and SAIC into a global partnership fully enabled to support our key customers around the world,” said Visteon chairman, CEO and president Donald Stebbins.

For his part, Yanfeng Visteon standing deputy general manager Ma Zhengang said: “The signing of this MoU represents an important step toward the fulfilment of our strategy to create a leading global interior company. “Our technical and manufacturing footprint will give us unmatched capability to support all our customers in key growth and emerging markets.”

Yanfeng Visteon Automotive Trim Systems Co is a joint venture between Visteon Corporation and Shanghai Automotive Industry Corporation’s automotive components group, Huayu Automotive Systems.

YFV designs and manufactures interior, exterior, seating, electronics and safety systems for automakers in China and abroad.

Headquartered in Shanghai, YFV employs around 29,000 employees in more than 87 facilities across China and overseas.