JCI：Focusing on Sustainability

An interview with John Moulton, Group Vice President and General Manager, China Johnson Controls Automotive Experience Business.

Gasgoo.com: Please introduce JCI AE’s China business in FY2010.

John Moulton: Our revenues for fiscal year 2010 were $3.1 billion US dollars, most of which were unconsolidated. Today, our presence here includes 24 joint ventures and 47 manufacturing locations. We have over 19,000 employees in China, and offer full engineering and development capabilities. We have the capability here in China to work with our customers starting with the styling concept and industrial design, engineering, supplier development all the way through to mass production.

Gasgoo.com: Johnson Control is seeking to acquire premier seating business. How will these acquisitions change Johnson Control?

John Moulton: As it relates to growth, in 2010, Johnson Controls announced several strategic acquisitions for our global seating business.

In November 2010, we finalized the acquisition of Michel Thierry. This enabled vertical integration and we now have the ability to make all seat components in house.

By incorporating Michel Thierry’s expertise in fabrics, Johnson Controls

now offers a broad portfolio of textile products, enabling the creation of distinctive styles that can be designed to match market trends, and fit the specific character of a brand.

This expertise in designing fabrics, together with the application of innovative processes and technologies, allows us to provide solutions for comfort and sustainability.

In February 2011, the acquisition of C Rob Hammerstein was finalized. Hammerstein is a European-based supplier of high-end seat structures, tracks and mechanisms.

At the end of December 2010, we signed a purchase agreement to acquire KEIPER and the automotive sport and specialty seat business of RECARO. KEIPER is a leader in recliner system technology and is known for its expertise in metal components and mechanisms. This acquisition is still pending final regulatory approval.

These acquisitions will improve our technical ability in vertical integration and will enhance our holistic understanding of future market and consumer needs.

Gasgoo.com: What kind of change will happen in automotive industry in the coming five years? How will these changes affect automotive parts sector?

John Moulton: I would say that the industry will continue to focus on sustainability and environmentally friendly features. For example, the seat is one of the heaviest components in the vehicle interior. Reducing mass in the seat can help improve the overall fuel economy of a vehicle. We have a lightweight seat structure that helps to reduce mass in the seat.

In terms of electronics, consumers also want to be connected. It’s important that we provide solutions for consumers to bring their devices in an appropriate matter that isn’t too distracting. We have strong HMI – or Human Machine Interface – capabilities that help facilitate this. An example would be the Connected Center Stack, which provides unique HMI focused on the consumer, along with connectivity to mobile devices and off board devices. This gives consumers convenient and easy access to social, entertainment and location-based features.

Gasgoo.com: What’s your opinion of development of China’s new-energy vehicle? What kind of R&D has Johnson Control been doing?

John Moulton: The Johnson Controls Power Solutions division has been doing a lot of work in the area of new-energy vehicle.

Johnson Controls-Saft has opened a Research and Testing Development Center in Shanghai focused on Li-ion energy storage systems. At this facility we are able to design, develop, and test advanced battery systems to meet the growth needs of the China market. With a dedicated team of engineers and scientists, we will support our customers to advance New Energy Vehicle technology from electrochemistry and system architecture to the development of advanced manufacturing processes.

Johnson Controls-Saft announced on April 20 that we have been awarded the contract to supply the complete battery system for two electric vehicle platforms being launched by the Beijing Electric Vehicle Company, which is a subsidiary of Beijing Automotive Industry Company.

This electric battery system is the first China-specific product designed and manufactured by Johnson Controls-Saft’s advanced battery team in China, leveraging our proven technology currently in production in Europe and the United States.

The Johnson Controls-Saft electric battery system will power the C30 and M30 electric vehicles, which are initially launching in an evaluation fleet of 2,000 units beginning later this year. The C30 is an A0 segment subcompact hatchback while the M30 is a small crossover vehicle based on the same platform. Both vehicles have been adapted with an electric powertrain by BEVC.

Gasgoo.com: Please introduce innovations Johnson Controls will exhibit on Auto Shanghai 2011.

John Moulton: We are showing our latest seating, interiors and electronics innovations at the show. In addition to our ie3 demonstrator vehicle, we are also showing the following:

First is flexible and sustainable seating solutions, including the ComfortThin Seat, offering occupants exceptional short and long-term comfort; and the Synergy Seat, which is designed to enhance comfort and safety while significantly reducing mass; Second is electronic innovations including a connected center stack, scalable instrument clusters and battery management systems; The third one is interior innovations including lightweight audio integration as well as wireless charging; Also, there are the battery systems, supporting new energy vehicles including an advanced electric vehicle battery system designed specifically for the China market.

Gasgoo.com: Why does Johnson Controls attach great importance to Auto Shanghai 2011？

John Moulton: Auto Shanghai gives us the opportunity to show our latest innovations in seating, interiors, electronics and batteries. This is an exciting time, as this is our first time exhibiting at Auto Shanghai 2011. We have a global show theme, Global Fluency, Automotive Solutions that translate globally.” This theme represents Johnson Controls understanding of global markets as well as how we support our customers around the world. We are seeing more global platforms in the industry so it’s important for us to provide global solutions for automakers.

Gasgoo.com: Auto show always leads the development of industry and tells the trend of consumption. What’s the trend of industry development? What’s your main focus in Auto Shanghai 2011?

John Moulton: In terms of trends, we see sustainability as one. Johnson Controls is committed to sustainability in all areas of our business. Our ie3 vehicle exemplifies this – through its use of natural fiber materials in the seats and the lightweight headliner. The ie3 also features our FaserTec seat pads made from coconut fibers and latex. They create an ideal seating climate through their moisture absorbing properties.

As you walk the show floor, New Energy Vehicles are a big part of almost every automaker display. Johnson Controls-Saft is a global leader in lithium-ion advanced battery technology for New Energy Vehicles.