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


About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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