Shanghai -- Johnson Controls has signed a memorandum of understanding (MOU) with Beijing Hainachuan Automotive Parts Co. Ltd. (BHAP), an auto parts subsidiary of Beijing Automotive Industry Group Co., Ltd. (BAIC Group), to set up automotive battery sales and manufacturing joint ventures in the world's largest vehicle market.
Under the MOU Johnson Controls and BHAP will partner to offer a range of batteries to automakers and service networks under BAIC Group, one of China'slargest automobile manufacturers. These batteries can power conventional vehicles and those for Start-Stop systems (Absorbent Glass Mat and Enhanced Flooded batteries), which can help automakers meet increasingly strict fuel efficiency and emission regulations.
"This MOU positions Johnson Controls and BAIC to take advantage of what will be the world's largest automotive battery market by 2020," said Joe Walicki, president, Johnson Controls Power Solutions. "By understanding market dynamics, consumer demands and technology needs, Johnson Controls' complete portfolio of batteries can best meet customers' short and long-term energy storage needs."
"BAIC and Johnson Controls have already established good cooperation in the past," said Xuejun Li, general manager of BHAP. "We are pleased to partner with Johnson Controls on Start-Stop business, to further explore the potential in the Chinese automotive industry by leveraging the strengths that each company can bring into the partnership, and to better serve BAIC and other related domestic and international original equipment customers."
Founded in 1958, BAIC Group covers a wide range of businesses from vehicle manufacturing, research and development, auto parts manufacturing, automobile service and trade, to general aviation investment and financing. It has automotive manufacturing joint ventures with Hyundai, Mercedes Benz, and a number of self-owned brands like BAIC Motor, Senova, Changhe Auto and Foton.
"We will continue to invest in China for future growth by bringing in our leading technologies and global best practices," said Kenneth Yeng, vice president and general manager, Johnson Controls Power Solutions China.
Approximately 22 million new vehicles are produced in China every year, making it the world's largest automotive market. Last month, Johnson Controls announced it signed an investment agreement to build a new battery manufacturing facility in Shenyang, China. It is expected to start operations in 2018. The company also has battery plants in Chongqing and Changxing, and an energy storage research and development center in Shanghai.
About Johnson Controls
Johnson Controls is a global diversified technology and industrial leader serving customers in more than 150 countries. The company's 170,000 employees create quality products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles; and seating components and systems for automobiles. Johnson Controls' commitment to sustainability dates back to its roots in 1885, with the invention of the first electric room thermostat. Through its growth strategies and by increasing market share, Johnson Controls is committed to delivering value to shareholders and making its customers successful. In 2015, Corporate Responsibility Magazine recognized Johnson Controls as the #14 company in its annual "100 Best Corporate Citizens" list. For additional information, please visit http://www.johnsoncontrols.com or follow@johnsoncontrols on Twitter.
About Johnson Controls Power Solutions
Johnson Controls Power Solutions is the world's largest manufacturer of automotive batteries, supplying approximately 140 million every year to automakers and aftermarket retailers. Our full range of lead acid and Lithium-ion battery technology powers nearly every type of vehicle for our customers - including conventional, Start-Stop, Micro Hybrid, hybrid and electric. Johnson Controls' recycling system has helped make automotive batteries the most recycled consumer product in the world. Globally, 15,000 employees develop, manufacture, distribute and recycle batteries at more than 50 locations. For more information, please visit http://www.JohnsonControls.com/PowerSolutions or follow @JCI_BatteryBeat on Twitter.