Johnson Controls Recognized by General Motors
Receives Supplier Diversity Leadership Award
Interior Supplier Best Exemplifies Goals of GM's Diversity Procurement Process
PLYMOUTH, Mich., Oct. 7 -- Johnson Controls has been recognized by General Motors with the automaker's Supplier Diversity Leadership Award for outstanding development of minority-owned supply companies. The company was the only tier-one interior supplier to receive the annual award this year. Johnson Controls previously was recognized by GM with a similar award in 2001.
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Rudy Paluch, vice president and general manager of the General Motors Business Unit for Johnson Controls, accepted the award from Jim McDonald, GM executive director of SPO and Supplier Diversity, at an event held at the General Motors Centerpointe North Campus in Pontiac, Michigan.
The awards ceremony was part of General Motors' annual Mentored Supplier Day and Matchmaker event for suppliers and minority business enterprises (MBEs). More than 120 of GM's tier-one suppliers attended to get an update on the mentor program and take part in the matchmaker activity -- in which suppliers could reacquaint themselves with GM commodity managers and build new relationships with GM officials and minority suppliers.
McDonald said the company's Supplier Diversity Leadership Award is presented annually to the tier-one supplier that best exemplifies the goals of the automaker's diversity procurement process and "goes the extra mile" to help GM develop minority companies.
GM's requirements for the award include setting measurable minority procurement goals of 8 percent of a supplier's total GM sales for advance purchasing initiatives and 6.5 percent for any global sourcing; integrating minority suppliers in their global purchasing activities; forming strategic alliances to allow supplier innovation; and creating mentor programs that provide business development guidance, technical expertise and subcontracting opportunities for minority suppliers.
"We are honored to be recognized by General Motors as a recipient of this important Supplier Diversity Leadership Award," said Keith Wandell, president of the Automotive Group for Johnson Controls. "Our goal is to support General Motors and their diversity procurement activities while expanding business opportunities in the auto industry for minority-owned firms."
As a global market leader in automotive interior systems, automotive batteries, and facility management and control systems, Johnson Controls purchased goods and services valued at more than $1.02 billion from diverse suppliers in fiscal-year 2002. This figure is expected to increase by an additional $50 million in 2003.
In May, Johnson Controls was named to the Billion Dollar Roundtable, an organization comprised of the 12 U.S. corporations that spend more than $1 billion annually with minority- and women-owned businesses.
In 2003, Johnson Controls minority purchases that supported General Motors programs are expected to exceed $210 million.
Johnson Controls has intensified its development efforts with diverse sources of supply as a key method to gain competitive advantages throughout its automotive and controls businesses. It currently has more than 1,100 diverse suppliers corporate-wide. Within the Diversity Business Development model at Johnson Controls, "diverse" suppliers include companies that are owned by minorities, women or veterans -- and those that are designated by government agencies as small businesses or disadvantaged businesses.
Under its Diversity Business Development program, Johnson Controls established practices to:
-- Include diverse suppliers in acquisitions/divestitures, lead supplier
arrangements, joint ventures and strategic alliances;
-- Implement standardized internal processes for recruiting, training and
utilizing diverse suppliers nationwide;
-- Expand a successful mentor/protege program for customers and key
suppliers throughout the United States;
-- Adopt Web-based systems that provide business opportunities to diverse
suppliers, measure performance, and promote diversity-oriented business
solutions to customers; and
-- Strengthen mandates requiring existing Johnson Controls suppliers to
offer solutions supporting supplier diversity.
In recent years, Johnson Controls has been recognized as an industry leader in diversity and in supporting minority-owned companies. Last year, the company was honored as "Corporation of the Year" by the Tennessee Minority Supplier Development Council (TMSDC). It has been honored as "Corporation of the Year" five times by the Michigan Minority Business Development Council (MMBDC). MMBDC and TMSDC are voluntary organizations with more than 2,500 members, which work to create links between major corporations and minority businesses.
Johnson Controls is a global market leader in automotive systems and facility management and control. In the automotive market, it is a major supplier of integrated seating and interior systems, and batteries. For non-residential facilities, Johnson Controls provides control systems and services, including comfort, energy and security management. Johnson Controls , founded in 1885, has headquarters in Milwaukee, Wisconsin (U.S.A.).
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NOTE TO EDITORS: A photo of Keith Wandell, president of the Automotive Group for Johnson Controls, is available by calling Debra Lacey at (734) 254-5735. For access to other Johnson Controls news releases and additional company information, visit the company's site on the World Wide Web at http://www.johnsoncontrols.com