Chrysler Core Focus/JCI Automotive Expansion
Johnson Controls acquires two seat trim plants from Chrysler
June 30, 1994 (PD: 201711)
Johnson Controls (JCI) completed its acquisition of two automotive seat trim facilities from Chrysler Corporation on June 30, 1994.
The acquired plants, Canadian Fabricated Products (CanFab), located in Stratford, Ontario, and EDIASA, located in Juarez, Mexico, were being operated by Chrysler’s Acustar Division. Combined annual sales of the two facilities exceeded $200 million.
In 1993, JCI accounted for 50% of Acustar’s sales. Chrysler officials said the plants would continue to supply trim products for many of the company’s present and future platforms through a multi-year supply agreement signed with JCI.
John Barth, JCI’s executive vice president, said the purchase of the trim cover facilities would strengthen JCI’s position as Chrysler’s largest seat system supplier. Barth went on to say that “the addition of the CanFab and EDIASA plants will enable us to improve our leadership position as the most fully integrated seat system supplier in the world.” For their part, Chrysler officials said they sold the two plants in order to focus on Chrysler’s core business of making cars, trucks, transmissions, and engines.