Johnson Controls, Inc. has signed a new long-term automotive battery supply agreement with SAIC Motor Corporation Limited (SAIC Motor), a further indication of Johnson Controls’ commitment to expand rapidly in China. The China region is Johnson Controls’ primary target for market expansion. Under the agreement, Johnson Controls, a global multi-industrial company, will provide its Absorbent Glass Mat (AGM) batteries to power SAIC Motor’s Start-Stop vehicles.
“Our company’s history in this market gives us unique insight into our current and prospective Chinese customers,” said Luke Lu, vice president and general manager of Original Equipment China, Johnson Controls Power Solutions. “As the global leader in automotive batteries, we are well-positioned to help the Chinese automotive industry grow by offering a spectrum of solutions to meet increasingly strict fuel efficiency regulations.”
Johnson Controls has produced nearly 20 million AGM batteries since 2007. By 2020, Johnson Controls estimates that 175 million vehicles around the globe will include Start-Stop technology. Already in Europe, more than half of new vehicles built feature Start-Stop. Johnson Controls is investing in AGM technology globally to increase production capacity for North America, Europe and China.
Start-Stop technology turns off a vehicle’s engine when the vehicle comes to a stop. When a driver’s foot leaves the brake pedal or engages the clutch, the engine turns back on. Compared with a conventional combustion engine, Start-Stop can provide an estimated 5-8 percent fuel savings. To successfully power additional starts and stops, the system requires a more robust battery. Johnson Controls’ AGM batteries deliver the necessary increased durability.
Johnson Controls entered the Chinese automotive supply market with batteries in 2005 and continues to invest in bringing advanced technologies, capacity and technical capabilities to China. Today, Johnson Controls employs more than 26,000 people in China. Johnson Controls is in the process of building a new corporate headquarters in Shanghai.