Shanghai -- Johnson Controls and Yanfeng Automotive Trim Systems Co have formed an automotive interiors partnership with a potential revenue stream of $7.5bn (EUR5.4bn).
Yanfeng Automotive is a wholly owned subsidiary of Huayu Automotive Systems Co, which is the component group of Shanghai Automotive Industry Corporation.
A non-cash agreement, with Yanfeng Automotive holding a 70% share in the venture, it pivots on asset contributions that will create the world's largest automotive interiors company, according to a Johnson Controls press release.
The new company will be headquartered in Shanghai with global engineering, development and customer centres in the United States, Europe, China, Japan and India. Instrument panels and cockpit systems, door panels and floor consoles will form its portfolio.
The transaction is subject to limited conditions and is expected to close in the first half of 2015.
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