Johnson Controls, Saft to Form Joint Venture

Johnson Controls of Milwaukee, Wisconsin, and Saft of Paris, France, have signed a memorandum of understanding to form a joint venture for advanced technology batteries to accelerate their participation in the hybrid vehicle market.

The joint venture will develop, manufacture and sell, on an exclusive basis, nickel metal hydride and lithium ion batteries for hybrid electric vehicles and electric vehicles globally. The agreement is expected to be finalized in early 2006 and will commence joint sales and marketing activities immediately.

The joint venture will provide global automakers with expanded sourcing options and production capacity for nickel metal hydride battery systems. Each company is also contributing complementary capabilities to the development and commercialization of next generation lithium- ion battery systems. They also will combine their development teams within existing locations and invest in state-of-the-art manufacturing facilities in line with demand.