Johnson Controls inks deal with Chinese firm

Milwaukee-based Johnson Controls will spin off its auto interiors business and enter into a joint venture with China’s Yanfeng Automotive Trim Systems. The resulting deal will create the world’s largest maker of automotive interiors — including interior systems, instrument panels, door panels, and floor consoles. Johnson Controls will retain a 30% stake in the Shanghai-based company, which is expected to generate $7.5 billion in annual sales. Johnson Controls will keep its auto seat business. It is currently the largest supplier of auto seats in the world.

The international transaction is expected to be finalized by mid-2015.