Shanghai – Cooley advised Johnson Controls on the formation of a global automotive interiors joint venture with Yanfeng Automotive Trim Systems.
Johnson Controls is a global diversified technology and industrial leader, creating quality products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles; and interior systems for automobiles.
Yanfeng Automotive Trim Systems is a wholly owned subsidiary of Huayu Automotive Systems, the component group of Shanghai Automotive Industry Corp., which is China's largest state-owned automaker.
The joint venture, which has not yet been named, will form the largest automotive interiors company in the world with revenues reaching approximately $7.5 billion. Yanfeng will hold a 70 percent share in the joint venture and Johnson Controls will hold a 30 percent share. The company will be headquartered in Shanghai with global engineering, development and customer centers in the United States, Europe, China, Japan and India. It will have more than 90 plants located across China, Europe and North America.
The joint venture will be incorporated in the new Shanghai Free Trade Zone and will be the largest manufacturing enterprise to be established in the zone. The venture also signifies a major step by Huayu Automotive Systems, Yanfeng's parent, as part of its globalization strategy in the context of a new round in China's restructuring of its state-owned business.
