July 2 marked the formal launch of Yanfeng Automotive Interiors, a joint venture between Johnson Controls and Yanfeng Automotive Trim Systems. Yanfeng is a wholly owned subsidiary of Huayu Automotive Systems Co., Ltd (HASCO), which is the component group of Shanghai Automotive Industry Corporation (SAIC).

Yanfeng Automotive Interiors is the world's largest automotive interiors parts supplier with Johnson Controls, a global multi-industrial, 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.

"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 operates more than 90 manufacturing, development, engineering and customer service locations around the world. The product portfolio includes 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.