Johnson Controls, Long life

Manufacturing in Action, Source : The Manufacturer US

The battery division of Johnson Controls dominates the automotive battery industry. Julia Smith takes a look at some of the strategies the company has adopted to retain and extend its market leading position.

If you have never stood in a near-deserted parking lot it is sure to be dark and raining and shed tears of frustration because of a dead battery, consider yourself fortunate. It does not count as one of life¹s more tender moments. If your vehicle is relatively new, it is enough to put you off that particular automaker for ever. Automotive batteries have not always been renowned for enjoying a long and happy life.

Johnson Controls has emerged as the largest automotive battery manufacturer in North America. To test battery chemistry and find ways to improve battery life and reliability, the company devised a special test. Starting the engine is the toughest act a battery has to perform, and no vehicles do more stop/starts than taxicabs. So, since 1989, more than 2,000 batteries have been on duty around the clock in taxicabs operating in the desert heat of the Las Vegas strip. Batteries, it should be noted, hate extremes of heat even more than they dislike the cold. After more than 110 million fleet

miles, Johnson Controls can point to decisive evidence that its batteries can outlast those of any competitor.

Market share has grown steadily due to a continuous effort to both improve battery quality and extend the life of this vital piece of equipment. Johnson Controls now supplies original equipment batteries for leading automakers, including DaimlerChrysler, Ford, Honda, Nissan, and Toyota. A stable of leading battery brands, including DieHard, Duralast, Interstate, ProStart, and Everstart, along with others, all bear Johnson Controls signature. Aftermarket service is also important, and customers represented in this segment of the market include AutoZone, Interstate Battery, Sears, Wal-Mart, and Costco. Of course, it is not just automobiles that need batteries to start. This may be the biggest market, but Johnson Controls also produce batteries for other applications such as marine, lawn and garden, commercial, motorcycle, wheelchair, and golf cart use. Obtaining the sort of market penetration that identifies you as the key player is one thing. Retaining it is another. Johnson Controls relies heavily on investment in new product and process technology to maintain its

market share. It has established a reputation as being at the forefront of battery technology and is seen as a benchmark for quality in the industry. To extend its lead in battery technology, Johnson Controls very recently completed the acquisition of German automotive battery maker HOPPECKE Automotive GmbH & Co. The company has a strong customer base that includes

many of Europe's leading automakers and is expected to generate in the region of $100 million this year. However, its most potent attraction from Johnson Controls¹ perspective is the opportunity to integrate even more technology into the business. By way of a brief explanation, a typical lead-acid battery has free-flowing electrolyte. HOPPECKE has developed a battery with an absorbent glass mat that holds the electrolyte. This prevents spillage or leakage even if the glass is ruptured. The key benefit

of this technology, called vlies.tec, is that it enables automakers to safely relocate the battery outside of the engine compartment and away from the heat it generates, thus extending its lifespan. This is new to Johnson for automotive applications.

It is a core technology in the batteries that are being developed for the new generation of 42-volt vehicle electrical systems. These sorts of systems are likely to become the dominant automotive standard in the years ahead‹and Johnson Controls can reap the benefits. Keith Wandell, President of the Johnson Controls battery business said of the acquisition, HOPPECKE technology will enable us to be at the forefront of the industry conversion

to 42-volt automotive systems. It is a technology that we expect to leverage throughout the business.

There is also a special synergy with the spiral-wound AGM battery that Johnson Controls produces under the brand name OPTIMA. "With the vlies.tec prismatic flat plate and OPTIMA spiral wound batteries, Johnson Controls AGM technology is anticipated to cover the broadest range of cycling requirements for high voltage automobiles," added Keith Wandell. Claus Zoellner, Chairman of HOPPECKE, believes that the increasing globalization of the battery industry will create a unique competitive advantage for the

combined expertise and capabilities of the two companies.

Longevity and quality of life are what we all crave for ourselves. We also crave these qualities in the products we buy, but are often disappointed. Johnson Controls has simply translated this basic desire into a mechanism for making a car engine start when it should, time after time after time. Johnson Controls is growing its market share, and plant closures are not in the picture. As a primarily aftermarket supplier, the state of the automotive business has no bearing on the battery business‹and so it looks set to run and run like one of its batteries.

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