The new company will have more than 90 manufacturing, development, engineering and customer service locations around the world.
02 Jul 2015 | 5183 Views | By Autocar Professional Bureau
Yanfeng Automotive Interiors, a joint venture between Yanfeng Automotive Trim Systems Co, a wholly owned subsidiary of Huayu Automotive Systems Co (HASCO), which is the component group of Shanghai Automotive Industry Corporation (SAIC) and Johnson Controls, has been launched.
Yanfeng Automotive Interiors is now the world's largest automotive interiors ...
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Yanfeng Automotive Interiors, a joint venture between Yanfeng Automotive Trim Systems Co, a wholly owned subsidiary of Huayu Automotive Systems Co (HASCO), which is the component group of Shanghai Automotive Industry Corporation (SAIC) and Johnson Controls, has been launched.
Yanfeng Automotive Interiors is now the world's largest automotive interiors parts supplier. Yangfeng will have 70 percent equity in the joint venture with global major Johnson Controls having a 30 percent share of the company, which will be headquartered in Shanghai. The new company will have revenues of $8.5 billion and an order backlog of $10 billion.
Above: On June 30, Chen Hong, chairman of SAIC Motor/HASCO, Alex A Molinaroli, chairman/president/CEO of Johnson Controls and other leaders from Yanfeng and Johnson Controls, Shen Jianhua, Board director of SAIC Motor/vice-chairman of HASCO/chairman of Yanfeng and Beda Bolzenius, vice-president/vice-chairman - Asia Pacific/president AE of Johnson Controls, signed the JV agreement on behalf of the two parties.
"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 around the world. The product portfolio will include instrument panels and cockpit systems, door panels, floor consoles 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.
This collaboration is expected will deliver advantages in the areas of global footprint and customer structure, and will integrate high quality resources in technology development, operations, and talent. Comprehensive synergies are anticipated when the companies integrate global resources. Additionally, there will be enhancements in business development, product integration and technology innovation that will further benefit global customers through high value interior products and services for global OEMs in China, North America, Europe, South Africa and Southeast Asia.