Johnson Controls considering exit from automotive business
By The Associated PressGeneral Automotive Automotive manufacturing Manufacturing
Car components division accounted for 50% of the company's $42.83 billion in revenue last year.
MILWAUKEE — Johnson Controls says it is looking at options for the separation of its automotive business.
The Milwaukee company, which makes auto components and building systems, said it doesn’t have a timetable for when its strategic review will be completed.
The automotive business, which includes seating, overhead systems, floor consoles, door panels and instrument panels, made up more than half of Johnson Controls’ $42.83 billion in revenue last fiscal year.
Johnson Controls also has a power solutions unit that includes lead-acid automotive batteries and advanced batteries for Start-Stop, hybrid and electric vehicles.
The company is selling its global workplace solutions division – which manages spaces for corporations – to CBRE Group Inc. for about $1.48 billion. The deal is expected to close by the fourth quarter.
In September, Johnson Controls Inc. announced that it was reorganizing its building efficiency business, separating the unit’s North America business from its global products business. The building efficiency business provides equipment, controls and services for heating, ventilating, air conditioning refrigeration and securities systems.
Johnson Controls is among several companies that are breaking off parts of their businesses. General Electric Co. said it will sell its private equity business in a deal valued at approximately $12 billion. EBay Inc. announced in October that it will split off payment processor PayPal. And Hewlett-Packard Co. is planning to break up its operations into two separate companies before November.
© 2015 The Canadian Press