Huayu Automotive Systems, the parts division of Chinese automaker Shanghai Automotive Industry Corp (SAIC), is considering buying an electronics business from Johnson Controls Inc (JCI), Chinese media has reported. Citing unnamed sources, the 21st Century Business Herald reports that Huayu will offer CNY6.3 billion (USD1 billion) to buy JCI's electronics business.
Significance: In 2012 another international supplier, Visteon, called off plans to sell a section of its business to Huayu. In 2011 SAIC won the right to restructure its businesses, including Huayu in a bid to raise the overall competiveness and profitability of the group. Huayu is 60%-owned by SAIC and is based in Guangzhou in China's southern Guangdong province. In 2012, Huayu had sales of CNY57.9 billion, up 11% from 2011, and profit of CNY3.1 billion, up 4%, according to the report.
