JCI May Sell Its Auto Business

Johnson Controls Inc. CEO Alex Molinaroli says the company is exploring a "full range" of options for separating its automotive unit, including a spinoff or sale.

Molinaroli has given no timetable for a deal and says no conclusion is likely this year. Last year JCI's automotive seating and interiors business accounted for 51% of the company's $42.8 billion in sales.

Since late 2013 JCI has sold its HomeLink remote door-opener business to Gentex, its automotive electronics business to Visteon and its headliner and sun visor units to Atlas Holdings. It also merged its interior components operations with Yanfeng Automotive Trim Systems to form a venture that is 70% owned by the Chinese company.

JCI has continued to expand its vehicle starter battery and propulsion battery businesses.

Molinaroli tells Automotive News that JCI is considering a spinoff or sale of all or part of its successful vehicle seating business because it dislikes the cyclical nature of the auto industry. He also says that, to remain competitive, the unit will require a larger capital investment that he wants to make.