Shares of Johnson Controls (NYSE:JCI) are surging after the auto-parts maker said it would spin off its automotive interiors business into a joint venture with a Chinese partner, Yanfeng Automotive Trim Systems. Johnson Controls will have a 30% interest in the new entity, which has yet to be named and will be the world’s largest producer of door panels, plastic parts and other car interior components.
Rival auto-parts makers are rallying on word of the deal, driving Gentherm and Standard Motor Products to all-time highs:
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Auto Parts Makers Drive Higher