MILWAUKEE, MI - Johnson Controls Inc. is continuing its strategy of distancing itself from its automotive interiors business in Holland.
The company it announced on Friday, July 24, that it will spin off its "Automotive Experience" segment, which includes its share of Shanghai-based Yanfeng Automotive.
JCI officials said it's not clear what, if any, impact the spinoff will have on the Yanfeng operations in Holland. JCI is a 30-percent partner with Yanfeng, which includes operations in China, the U.S. and Europe.
In a news release issued Friday, JCI officials said they completed the spinoff of their automotive interiors operations to Yanfeng earlier this month. The joint venture is the largest automotive interiors company in the world with annual revenues of $8.5 billion, JCI said.
The spinoff announced Friday will take all of JCI's "Automotive Experience" segment, which includes seating, and spin them off into a new publicly traded company, including its stake in Yanfeng. The transition is expected to take about 12 months, according to a news release.
"This is a great opportunity for our Automotive Experience business to further its position as the global leader in automotive seating and interiors," said Alex Molinaroli, chairman and CEO of Johnson Controls in a news release.
"At the same time, Johnson Controls will move forward with our multi-industrial strategies and make investments in our core growth platforms around buildings and energy storage."
JCI spokesperson Fraser Engerman said no decision has been made about where the new company will be headquartered. The JCI Automotive Experience currently has offices in Plymouth, Milwaukee, Wis. and Burscheid, Germany.
The spinoff does not affect JCI's Power Solutions division, which operate its advanced battery plant in Holland.
The plant, which began production in 2012, employs about 150 workers, producing lithium ion batteries for several hybrid and electrical vehicles produced by Ford and Mercedes Benz.
Jim Harger covers business for MLive/Grand Rapids Press. Email him at jharger@mlive.com or follow him on Twitter or Facebook or Google+.