Supplier Profile: Johnson Controls

Johnson Controls aligned cost structure with global market conditions and  looks set to capitalise on changing times in auto industry

“It’s a new day in the auto industry,” said William L. Kozyra, Chairman CEO and President of TI Automotive and also serving as Chairman of Original Equipment Suppliers Association, referring to the recent recovery experienced by the auto industry. 2010 has been positive for most automakers in North America, with the US market for light vehicles showing sustained improvement. For the full-year 2010, sales in the US were up 11.0% year-over-year (y/y), at 11.23 million vehicles. With the economy receiving an additional boost from recent fiscal stimulus measures passed by Congress, IHS Automotive has raised its forecast for 2011 sales to 13.1 million units, up from the previous forecast of 12.8 million for the region. Suppliers that survived the lean times by following restructuring strategy and collaborating with OEMs to ensure mutual health are now starting to thrive again. One supplier, which has aligned its cost structure with global market conditions and took major restructuring action in North America and Europe is Johnson Controls.