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Posts Tagged ‘auto merger’

Auto Interior Behemoths Merge in Joint Venture

Johnson Controls spins off business to Chinese-owned company.

by on May.19, 2014

Alex Molinaroli, left, Johnson Controls chairman and chief executive officer, and Shen Jianhua, Yanfeng chairman, seal the deal on their new joint venture.

In a deal that is emblematic of how the rapid growth of the auto industry in China is changing the landscape, Johnson Controls is spinning off part of its collection of automotive assets to form a new joint venture with an expanding Chinese company that will focus on automotive interiors.

JCI and Yanfeng Automotive Trim Systems Co. Ltd., a wholly owned subsidiary of Huayu Automotive Systems Co., Ltd. (HASCO), the component group of Shanghai Automotive Industry Corp. (SAIC), announced they had signed a definitive agreement forming the new venture where Yanfeng will hold a 70% stake and JCI the remaining 30%.

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The noncash transaction creates the largest automotive interiors company in the world with annual revenues of approximately $7.5 billion. (more…)

Marchionne Pushing for Fiat-Chrysler Listing on NYSE

CEO plans to lay out plans for new automaker to board.

by on Jan.24, 2014

Might Chrysler House in downtown Detroit be the new headquarters for Fiat-Chrysler?

The evolution of what will be Fiat-Chrysler continues as CEO Sergio Marchionne will tell the Fiat SpA board that the New York Stock Exchange should be the primary market for the newly merged company’s stock: moving it further away from Italy, Fiat’s ancestral home.

In a meeting expected to take place next week, Marchionne is expected to put forth a series of recommendations to the board. In addition to listing on the NYSE, he’s likely to recommend the company’s headquarters be located in the U.S. as well as having a location in the U.K. for tax purposes.

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Listing on the NYSE is important because it puts the company within view of potential borrowing partners, Marchionne said previously. This could be important as he continues to push Fiat from a regional European automaker to now Fiat-Chrysler, a global player of scale that can compete with bigger makers like Volkswagen AG, General Motors and Toyota. (more…)

VW and Porsche Agree to Merge

The latest sign of a global industry consolidation.

by on May.07, 2009

The ties between Porsche and Volkswagen date back to the latter's founding, the Beetle developed by Ferdinand Porsche. More recently, they've worked together on the VW Touareg and Porsche's Cayenne, the GTS version shown here.

The ties between Porsche and Volkswagen date back to the latter's founding, the Beetle developed by Ferdinand Porsche. More recently, they've worked together on the VW Touareg and Porsche's Cayenne, the GTS version shown here.

In the latest sign of a rapidly accelerating global automotive consolidation, Volkswagen and Porsche have agreed to merger.

What’s unusual about the deal is that here the Goliath, Europe’s largest automaker, is effectively being taken over by the industry’s David, the small but hugely profitable luxury manufacturer.

That something would happen between the two German manufacturers has been anticipated for months, as Porsche has steadily expanded its stake in the larger automaker, buying up 51 percent of Volkswagen stock.

But VW hasn’t been an entirely passive target.  Its regional government, Lower Saxony, has long held a controlling 20 percent “golden” share in the company and had originally been expected to block a full takeover in order to protect both its investment and the huge job base at Volkswagen’s headquarters factory town.  Wolfsburg sits just miles from where the dividing line between West and East Germany used to run.

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