Johnson Controls Inc. is considering a potential sale of its automotive electronics unit but rejects claims over its intention to sell its automotive interiors business, the company said in a statement.
Three sources close to the matter informed Reuters that Johnson Controls, a diversified conglomerate, was exploring the possibility that it may sell its automotive interiors division. But two of them later corrected that it was actually the electronics part of the automotive interiors and electronics segment Johnson has intention for sale.
The company, which is based in Milwaukee, Wisconsin, received advised from investment banking firm JPMorgan Chase on the potential electronics divesture.
Major businesses that will be left to Johnson Controls once the sale becomes successful are the interiors unit, car batteries, building controls and automotive seating.
With sales of more than $4 billion in car interiors, Johnson Controls is the largest auto supplier in the U.S. It is now facing dilemma from the increasing competition against China and from the sluggish production rate in troubled Europe.
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