Johnson Controls has signed a new long-term automotive battery supply agreement with SAIC Motor Corporation Limited, a further indication of Johnson Controls’ bid to expand rapidly in China.
Under the agreement, Johnson Controls will provide its Absorbent Glass Mat (AGM) batteries to power SAIC Motor’s Start-Stop vehicles.
Luke Lu, vice president and general manager of Original Equipment China, Johnson Controls Power Solutions, said: “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.”
Start-Stop technology turns off a vehicle’s engine when the vehicle comes to a stop. Compared with a conventional combustion engine, Start-Stop can provide an estimated 5-8% fuel savings. To successfully power additional starts and stops, the system requires a more robust battery.
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.
Johnson Controls has produced nearly 20 million AGM batteries since 2007 and by 2020 the company estimates that 175 million vehicles around the globe will include Start-Stop technology.
The company entered the Chinese automotive supply market with batteries in 2005 and continues to invest in it capacity and technical capabilities in China.