/ Industry, News / Johnson Controls stock up on China auto deal

Johnson Controls stock up on China auto deal

Linked In Share
Johnson Controls stock up on China auto deal

The US multinational, multi-industrial, 170,000 employees strong company has seen its stock rise the most in six months as it taps a profitable partnership for the auto-interiors business through a joint venture with China’s Yanfeng Automotive Trim Systems Co.

According to the company, Johnson Controls is lately working on reducing its reliance on the cyclical auto industry, while also targeting efforts to build up efficiency among its many businesses. The company sold its auto-electronics unit to Visteon Corp. at the start of the year and was now searching for viable options for the interiors division, that builds door and instrument panels – as the unit’s profits constantly dropped since 2011.

“We expect to get dividends and not put cash into this,” said Chief Executive Officer Alex Molinaroli. “We think we’re going to benefit from the growth that’s going to come in that marketplace.”

According to the US and Chinese companies, Yanfeng would have 70% of the joint-venture’s shares, with a projected revenue of $7.5 billion as the pact lets Johnson Controls tap into the highly lucrative auto interiors business in China.
Johnson Controls Inc.’s shares rose 4.3% to reach $46.69 at the close in New York after the joint announcement, marking the biggest rise in stock since November 21, 2013.

Via Bloomberg

by Aurel Niculescu (my Google+) - Tuesday, May 20th, 2014 - filed under Industry, News. Image credit: .
Linked In Share
Related Articles
auto interiors china joint venture us


Discuss: Johnson Controls stock up on China auto deal

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Qoros 3 City SUV shown in Guangzhou
Qoros 3 City SUV shown in GuangzhouThe world debut of the new Qoros 3 City SUV has been made recently, during the 2014 Guangzhou Motor Show. After it has been ...
Europe: Ford Romania to drop around 20% of its workforce
Europe: Ford Romania to drop around 20% of its workforceThe second largest US automaker is not doing so well in Europe, even as the recovery is finally showing up its face across the ...
L.A. Auto Show: Mazda MX-5
L.A. Auto Show: Mazda MX-5The Japanese automaker unveiled during the 2014 Los Angeles Auto Show the US Spec version of the iconic Mazda MX-5 ...
L.A. Auto Show: 2015 Chrysler 300
L.A. Auto Show: 2015 Chrysler 300The 2015 Chrysler 300 has been officially presented to the public in Los Angeles, a couple of days after its online ...
L.A. Auto Show: Mini Citysurfer Concept
L.A. Auto Show: Mini Citysurfer ConceptWe all know the Los Angeles Auto Show to be an unconventional automotive event on many occasions. Here’s a British one that ...
L.A. Auto Show: Scion iM Concept
L.A. Auto Show: Scion iM ConceptToyota’s brand Scion has officially pulled the wraps off the iM Concept at the 2014 L.A. Auto Show. One of the most important ...
Japan – BMW 740i Executive Edition launched
Japan – BMW 740i Executive Edition launchedBMW has launched the 740i Executive Edition in Japan where the model will be offered exclusively. A new special edition of the ...
China – 7-seat Ford Edge introduced
China – 7-seat Ford Edge introducedA seven-seat version of the Ford Edge has been officially presented to the public during the 2014th edition of the Guangzhou ...
L.A. Auto Show LIVE: Volkswagen Golf SportWagen HyMotion
L.A. Auto Show LIVE: Volkswagen Golf SportWagen HyMotionThe world debut of the Volkswagen Golf SportWagen HyMotion has been made during the 2014 Los Angeles Auto Show. The battle for ...
L.A. Auto Show: Porsche Cayman GTS & Cayenne GTS
L.A. Auto Show: Porsche Cayman GTS & Cayenne GTSThe German premium sports car maker has used the 2014 Los Angeles Auto Show to officially unveil the US spec versions of the ...
L.A. Auto Show: Fiat 500X
L.A. Auto Show: Fiat 500XFollowing its recent European unveiling during the 2014 Paris Motor Show, Italy’s Fiat has decided to also debut the model for ...
L.A. Auto Show: Porsche Panamera Exclusive Series
L.A. Auto Show: Porsche Panamera Exclusive SeriesThe public debut of the brand new Porsche Panamera Exclusive Series has been made recently during the 2014 Los Angeles Auto ...
2015 Toyota Prius C introduced
2015 Toyota Prius C introducedA slightly updated version of the 2015 Toyota Prius C has been officially introduced by the car manufacturer. Toyota is getting ...
Volkswagen Golf R gets priced in the U.S.
Volkswagen Golf R gets priced in the U.S.The official starting price of the new Volkswagen Golf R has been announced recently in the United States as the model in ...
L.A. Auto Show LIVE: Ford Mustang Shelby GT350
L.A. Auto Show LIVE: Ford Mustang Shelby GT350After a proper teasing campaign, Ford unveiled a few days ago the latest version of the Shelby GT350 Mustang and now the company ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

qoros 3 city suv
mazda_mx-5US
Mini_citysurfer_Mini_citysurferP90169144_highRes
Scion iM Concept 1
BMW 740i Executive Edition 1
7-seat Ford Edge 1
Volkswagen Golf Variant HyMotion
Cayenne_GTS
2016 Fiat 500X Lounge
2015 Toyota Prius C 1
2015 volkswagen golf r united states 1
OLYMPUS DIGITAL CAMERA

More automotive from inautonews
The world debut of the new Qoros 3 City SUV has been made recently, during the 2014 Guangzhou Motor Show. After it has been teased several times and then leaking in a few images Qoros’ newest creation has been officially presented to the public, during the 2014 Guangzhou Motor Show. The model in ...
read more
Inautonews Editors Section
Test Drive: Ford Fiesta ST
Test Drive: Ford Fiesta ST The current generation of the Ford Fiesta ST has been officially presented to the public back in March, 2012, during the Geneva Motor Show, and it ...
Test Drive: Renault Twizy – Back to basics
Test Drive: Renault Twizy – Back to basics Renault has been producing the Twizy for a couple of years now, in its Valladolid, Spain, facility but spotting one on European roads can turn out ...
Test Drive: Mercedes-Benz SL400
Test Drive: Mercedes-Benz SL400 The Mercedes-Benz SL is currently in its sixth generation and since the company has released a new entry-level, the SL400, which is basically the ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety Recall roundup: Land Rover LR4, Range Rover and Range Rover SportA new recall has been issued by Land Rover recently, covering the LR4, the Range Rover and the ... US: Takata representative called to testify before Senate committeeDo you remember the Senate committee hearings that GM CEO Mary Barra went through following the ...
Safety Section