US auto parts maker to outsource interiors to China

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US auto parts supplier Johnson Controls will outsource its manufacturing of interior car parts in a merger with a subsidiary of Chinese automaker SAIC, according to a statement on Sunday.

Johnson Controls said it will have a 30 per cent stake in the shared enterprise, which it claimed would be “the largest automotive interiors company in the world with revenues of approximately US$7.5 billion.”

The remaining 70 per cent ownership in the company will be held by a subsidiary of SAIC, Yanfeng Automotive Trim Systems.

The new company will be based in Shanghai and will have development centres and clients in the United States, Europe and Asia. It will produce instrument panels and cockpit systems, door panels and floor consoles.

For several months, Johnson Controls had been examining options for its interior car parts production, which are worth around $4.2 billion a year, a spokesman said.

Johnson Controls chairman and chief executive Alex Molinaroli said in the statement the new venture “is a natural extension of our already very successful existing partnership with Yanfeng in automotive seating.”

“It creates a strong combined company with a market leading position and a foundation for sustained global growth, he added.

The deal is expected to be completed in the first half of 2015.






Source : Channel News Asia | May 19, 2014


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Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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