Johnson Controls and SAIC's Yanfeng Automotive Trim Systems Co., Ltd. Sign Global Automotive Interiors Joint Venture Aagreement

Johnson Controls, (NYSE: JCI), aglobal multi-industrial company, and Yanfeng Automotive Trim Systems Co.,Ltd., a wholly owned subsidiary of Huayu Automotive Systems Co., Ltd.(HASCO), the component group of Shanghai Automotive Industry Corporation(SAIC), today announced the signing of the agreement for a global automotiveinteriors joint venture. The new joint venture will be called Yanfeng Automotive Interiors, and willbe the largest automotive interiors company in the world with revenues ofapproximately $8.5 billion with a backlog to reach $10 billion in the nextfew years. Yanfeng will hold the majority 70 percent share in the jointventure, and Johnson Controls will have a 30 percent share. The companies signed a definitive agreement in May 2014 to form this jointventure, which is expected to begin operations in July 2015, subject toreceipt of all regulatory approvals. "Combining our global interiors businesses enhances our ability to serve ourautomotive customers throughout the world," said Alex Molinaroli, JohnsonControls chairman and chief executive officer. "This will result in anautomotive interiors company with unmatched scale, capabilities and reach." The new company will be headquartered in Shanghai with more than 90manufacturing, global engineering, development and customer centers in theUnited States, Europe, China, Japan and India. The product portfolio willinclude instrument panels and cockpit systems, door panels, floor consolesand overhead consoles. The interiors joint venture agreement is the latest in a series of recentstrategic transactions taken by the company to both strengthen and rebalanceits portfolio of operating businesses.