Automotive parts supplier Johnson Controls has announced it is spinning off its automotive interiors unit – which makes instrument panels, floor consoles and door panels – via a joint venture with Chinese company Yanfeng Automotive Trim Systems.
The deal will see Yanfeng – which is owned by Huayu Automotive Systems, the in-house supplier to China’s largest state-owned automaker, SAIC – being the controlling stakeholder in the JV with a majority 70% share, with Johnson Controls holding the remaining 30%.
The as-yet-unnamed partnership will be headquartered in Shanghai, and will have an estimated 15% share of the global auto interiors market, reports indicate. Last August, Yanfeng also bought over the 50% ownership interest in its Chinese JV with Visteon, Yanfeng Visteon Automotive Trim Systems.
The spinoff will thus leave Johnson Controls’ automotive division with only battery and seating operations – JC is the maker of Varta automotive batteries and owns Keiper Recaro’s automotive business.