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Johnson Controls signs MOU with BHAP to form new JV

SHANGHAI – Johnson Controls has signed a memorandum of understanding (MOU) with Beijing Hainachuan Automotive Parts Co., Ltd. (BHAP) to set up an automotive battery sales and manufacturing joint venture in China, according to a company news release on September 14.

BHAP is an auto parts subsidiary of Beijing Automotive Industry Group Co., Ltd. (BAIC Group).

The new JV will provide a wide range of batteries to automakers and service networks under BAIC Group. The batteries can power conventional vehicles and vehicles with start-stop systems (Absorbent Glass Mat and Enhanced Flooded batteries), which can help automakers meet increasingly stringent fuel efficiency and emissions regulations.

Joe Walicki, president of Johnson Controls Power Solutions, said: “This MOU laid a solid foundation for Johnson Controls and BAIC to explore the largest automotive battery market in China. Through the understanding of market dynamics, consumer demands and technology needs, Johnson Controls’ complete portfolio of batteries can best meet customers’ short and long-term energy storage needs.”

Li Xuejun, general manager of BHAP, commented, “BAIC and Johnson Controls have already established good cooperation in the past. We are pleased to partner with Johnson Controls on Start-Stop business to further explore the potential in the Chinese automotive industry by leveraging the strengths that each company can bring into this partnership.”

Kenneth Yeng, vice president and general manager at Johnson Controls Power Solutions China, said: “We will continue to invest in China for future growth by introducing our leading technologies and global best practices.”

BAIC Group has automotive manufacturing JVs with Hyundai, Mercedes-Benz and a number of self-owned brands like BAIC Motor, Senova, Changhe Auto and Foton.

Johnson Controls announced in August to build a new battery manufacturing facility in Shenyang, Liaoning Province, which is expected to start operation in 2018. The company also has battery plants in Chongqing and Changxing, and an energy storage R&D center in Shanghai.

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