SAIC & Johnson Controls: joint venture

SAIC Yanfeng Johnson Controls automotive interior of a joint venture group

As a global, diversified company, today announced that Johnson Controls, and Yanfeng Automotive Trim Systems Co., Ltd. (SAIC subsidiary parts enterprises wholly owned subsidiary of Huayu Automotive) signed an agreement to jointly set up a car interior global joint venture.

The agreement is a non-cash transactions, asset injection by a joint composition, aims to establish a world's largest automotive interior company, sales will reach $ 7.5 billion. SAIC Yanfeng will hold a majority stake in the joint venture, representing 70% of shares, representing 30% of Johnson Controls shares.

"In the past 15 years, in collaboration with Yanfeng, Johnson Controls automotive seat in the field was a great success and now, the interiors of both the business merger is a natural extension of existing partnerships. Newly merged The company will occupy a leading position in the market and lay a solid foundation for future global sustainable development. "Johnson Controls chairman and CEO of Muan Li (Alex Molinaroli) said. "This fully confirms the Johnson Controls Group solemn commitment to China this increasingly important global automotive industry center."

The new joint venture will be headquartered in Shanghai and has a global engineering, R & D and customer centers in the U.S., Europe, China, Japan and India. Products business will cover the dashboard, cockpit systems, door panels and instrument panel deputy.

The transaction is required to meet the relevant restrictive conditions, is expected to be completed in the first half of 2015.

The agreement excludes SAIC Yanfeng Johnson Controls and the existing network of some enterprises. Johnson Controls will continue to operate under this part of the business in its professional automotive interiors business group network. Johnson Controls will be U.S. Central Time at 15:00 on May 19 held a conference call with analysts.

SAIC procurement Johnson Controls Battery for start - stop system

Johnson Controls announced with Shanghai Automotive Group Co., Ltd. signed an agreement, which will supply battery brands for start - stop system.

According to a long-term supply agreement for automotive batteries, Johnson Controls Power Solutions (Johnson Controls Power Solutions) will provide absorbed glass fiber separator battery (Absorbent Glass Mat, referred to as AGM) SAIC, as a start - stop battery system. Johnson Controls did not disclose details about the contract, including the amount and specific deadlines.

Johnson Controls said temporarily suspended when the car start - stop system automatically turns off the engine when the driver release the brake or depress the clutch , the battery to start the engine again. Compared with conventional engines, start - stop system reduces fuel consumption by 5-8%, but you need to configure higher performance batteries.

According to Johnson Controls data, AGM battery charge and discharge tolerance is three times that of ordinary batteries, power is more powerful and longer life, be able to overcome the challenges of all kinds of harsh environment, to meet the start - stop all kinds of car batteries requirements. The battery is put into use in 2007, has so far produced a total of 2,000 million units. Johnson Controls is estimated that by 2020 the world will have 175 million cars with a start - stop system.

Johnson Controls plans to invest $ 520 million in the global expansion of AGM batteries, including $ 100 million into China

Johnson Controls Inc. plans to spin off its automotive-interiors business with a Chinese partner, a major step for Chief Executive Alex Molinaroli's effort to focus the U.S.-based company on higher-margin nonauto businesses.

Johnson Controls, which is based in Milwaukee, will create a new company co-owned with Chinese supplier Yanfeng Automotive Trim Systems Co.

The U.S. company will retain a 30% interest in the new entity, which would become the world's largest producer of items such as instruments, door panels and other plastic and wood parts for car interiors. The business, which has more than 20,000 employees, generates $3 billion a year in revenue.

"We had a business that was struggling to be profitable, struggling to grow. Now we have a partner that is profitable and is growing, and the joint venture will be profitable and growing," Mr. Molinaroli said.

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patpending wrote:Do they have a Soft Dashboard Plastics division?