Yanfeng plans 341 million yuan U.S. factory to supply VW
Chinese supplier Yanfeng Automotive Interiors plans to build a $55 million (341 million yuan) U.S. factory in Chattanooga, Tenn., to supply parts to Volkswagen AG's nearby assembly plant.
Yanfeng will supply parts including floor consoles, instrument panels and trunk trim for future VW models. The plant will employ 325 workers. Production is to begin in late 2016.
VW plans to make a midsize SUV at its Tennessee plant starting late next year. Yanfeng was formed last year as a joint venture between Johnson Controls and Yanfeng Automotive Trim Systems Co., a subsidiary of Huayu Automotive Systems Co., which is the component group of SAIC Motor Corp.
Johnson Controls has a 30 percent stake.
The joint venture, with projected sales of about $7.5 billion (46.58 billion yuan) annually, is one of the largest automotive interiors suppliers.
VW plans to make a midsize SUV at its Tennessee plant starting late next year. Yanfeng was formed last year as a joint venture between Johnson Controls and Yanfeng Automotive Trim Systems Co., a subsidiary of Huayu Automotive Systems Co., which is the component group of SAIC Motor Corp.
Johnson Controls has a 30 percent stake.
The joint venture, with projected sales of about $7.5 billion (46.58 billion yuan) annually, is one of the largest automotive interiors suppliers.
