Johnson Controls is looking into the possible sale of its automotive electronics unit. This sale though does not include the automotive interiors business of the company. The possible sale has been confirmed with Reuters even if earlier reports indicated that the company is also selling off its automotive interiors division.
Johnsons Controls is the biggest auto supplier in the United States with sales amounting to US$4 billion in 2012. This was achieved despite low vehicle production, increased competition from China and pressure from the industry to lower margins.
Should the electronics unit be sold, the company would be left with the interiors unit and three other major units namely automotive seating, building controls and car batteries. The sale is being advised by JP Morgan Chase bank. The full complement of the sale are electronics unit of its automotive interiors division together with its full electronics division. This part of the business accounted for a quarter of the division's sales.
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