Johnson Controls and SAIC Motor reach automotive battery supply agreement

Johnson Controls, a diversified global company with interests in the automotive, building and energy battery industries, recently announced a new long-term automotive battery supply agreement with Shanghai Automotive Industry Corporation (SAIC). Under the agreement, Johnson Controls Powertrain will supply absorbed glass mat batteries (AGM batteries) for SAIC's own brands' start-up and parking models.

"We are very honored to start a new cooperation with SAIC Motor in the field of start-stop vehicles," said Lu Kejian, vice president and general manager of Johnson Controls Energy Power China Vehicle Support Business. "As a leader in the global automotive battery industry, we hope to help vehicle manufacturers meet more stringent fuel economy requirements through advanced technology and product quality, and contribute to the long-term sustainable development of China's automotive industry."

Since 2007, Johnson Controls has produced 20 million AGM batteries worldwide. Start-stop vehicles equipped with these batteries can reduce pollutant emissions by about 4 million tons, which is equivalent to saving 87 million trees or reducing 680,000 vehicles on the road. Currently, 30 million vehicles in the world use start-stop power systems. It is expected that by 2020, the number of start-stop vehicles in the world will rise to 175 million, accounting for 14% of the total number of vehicles. Johnson Controls is actively investing in expanding its global AGM battery production capacity to support the growing demand for start-stop vehicles in the North American, European and Chinese markets.

The working principle of the car start-stop system is that when the car stops temporarily, the engine is automatically shut down; when the driver releases the brake or steps on the clutch, the battery restarts the engine. Compared with traditional fuel engines, the start-stop system can save consumers 5-8% of fuel consumption, but it requires a car battery with better performance. Johnson Controls' AGM battery has a charge and discharge tolerance that is three times that of ordinary batteries, has a stronger power and a longer service life, can overcome the challenges of various harsh environments, and fully meet the various requirements of start-stop vehicles for batteries.

In addition to receiving new orders from SAIC, Johnson Controls Powertrain has won recognition and approval from many vehicle manufacturers in China for its innovative technology, high-quality products and comprehensive services. Recent awards include: "Excellent Supplier of Aftermarket Parts in 2013" from Shanghai GM, "2013 Supply Assurance Excellence Award" from Guangzhou Honda Automobile and Dongfeng Honda Engine, "2013 Best Supplier Award in Aftermarket Cooperation Satisfaction Rating" from BYD Auto, and "2013 Best Supplier Award" from Zhejiang Geely Holding Group.

As a global leader in the automotive battery field, Johnson Controls Energy Power entered the Chinese market in 2005 and has continuously increased its investment in the Chinese market, introduced advanced technologies and production facilities, and provided automotive battery products and energy storage solutions covering various technical fields, helping Chinese automakers achieve technological breakthroughs and meet increasingly stringent fuel economy standards. Today, the total number of employees in the Energy Power business's China headquarters in Shanghai, Zhejiang Changxing Factory, Chongqing Factory and Shanghai Youlejia New Energy Power Battery R&D Center has exceeded 1,100.