The spinoff of automotive seating and interiors business Adient is expected to be completed on October 31, when it will start trading on the NYSE under the ticker ADNT, Bloomberg reported. It will be the world's biggest car seat maker.
Incoming CEO of Adient and former Johnson Controls Executive VP Bruce McDonald joined CNBC's "Power Lunch" to talk about the auto business.
"We're the largest seating manufacturer in the world. We manufacture about one in three seats from a global perspective, so we have a pretty good cross-section of the industry," he said.
North America is on a "plateau level" at the moment, he said. "We don't see the industry down-turning, but we don't see it having a lot of gas left in the tank in terms of a future volume growth perspective," McDonald explained.
On the other hand, Europe is in the "very, very early stages of a recovery," he said. Industry volumes in Europe are about one-third lower than they were in 2008, but that could be a good sign for things to come.
"I think the auto sector tends to be a sector that goes into a downturn first, and it comes out first. So I'm kind of looking forward to Europe sort of stabilizing and improving here, and then we should start to see a benefit there," he explained.
In addition, China is slowing down but is still doing "great by all the other geographic territory's perspective," McDonald noted.
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TheStreet Ratings team rates Johnson Controls as a Hold with a ratings score of C+. The primary factors that have impacted the team's rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
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