Johnson Controls Reaches Agreement with RECARO North America
6 April 1998
Johnson Controls Reaches Agreement with RECARO North America To Provide Specialty, Brand-name Seats for Major Automakers
Premier supplier of vehicle interior systems to build and market
RECARO seats for new cars, light trucks in North America
DEARBORN, Mich., April 6 -- Johnson Controls will
offer its first specialty, brand-name automotive seats -- under the
internationally known RECARO name -- through an agreement announced today with
RECARO North America. Under terms of the deal, Johnson Controls gains the
exclusive right to manufacture RECARO brand-name seats for passenger cars and
light trucks and market them to automakers in North America. According to
Johnson Controls officials, the company plans to make RECARO seats and
technologies available to its customers for current and future seating
programs.
Executives from Johnson Controls and RECARO North America announced the
planned joint venture at a news conference held today at the Automotive Hall
of Fame in Dearborn, Michigan. The new joint venture -- called RECARO Johnson
Controls LLC -- will be located at the RECARO North America headquarters in
Clawson, Michigan.
"We see this as a history-making event for both of our companies -- one
that is a win for Johnson Controls, a win for RECARO and a win for our
customers," said Rande Somma, president of interior trim, marketing and
business development for Johnson Controls.
With its automotive headquarters in Plymouth, Michigan, Johnson Controls
is the world's premier manufacturer of automotive seating and interior
systems. RECARO North America -- a U.S. subsidiary of RECARO GmbH & Company of
Kirchheim, Germany -- designs and produces a full line of premium, brand-name
seat systems.
"We welcome the opportunity to add the RECARO name to our expanding array
of exclusive, brand-name automotive interior products," said Somma. "The
RECARO identity is one of the most well-known and respected names around the
world in premium-branded, ergonomic seating. With RECARO seats from Johnson
Controls, automakers will be able to add significant value to their vehicles
-- and differentiate them in the marketplace," he said.
RECARO seats for North American manufacturers of cars and light trucks
will be marketed jointly by RECARO and Johnson Controls through the new
venture. RECARO North America will continue to do business independently in
the heavy-duty trucking market, bus/transit markets and aftermarket, and will
manage sales, service, production and distribution in these areas.
"RECARO is a brand that evokes passion from drivers in Europe and Asia,"
said Douglas Eriksen, president and chief executive officer of RECARO North
America. "It is one of the best-known names in specialty seating in the world,
which we hope to emulate in the North American market. This strategic alliance
with Johnson Controls will offer customers RECARO's award-winning design
capabilities and experience in high-performance seating. Together, Johnson
Controls and RECARO can meet increasing customer demands for individualized
automotive interiors, with a focus on safety, comfort and ergonomic design."
RECARO seats will be the first brand-name seating products for passenger
cars and light trucks to be offered by Johnson Controls. Johnson Controls also
markets the brand-name, luxury executive office chair -- Viper AutoOffice(TM).
It features an actual production-model seat from a Dodge Viper sports sedan.
Johnson Controls, Inc. (http://www.johnsoncontrols.com), with headquarters in
Milwaukee, Wisconsin, is a global market leader in automotive systems and
building controls. Through its Automotive System Group, it designs and
produces seating and interior systems for automakers worldwide, and batteries
for the original equipment and replacement markets. The Controls Group serves
the non-residential buildings market with controls systems and services, and
integrated facility management. Founded in 1885, Johnson Controls operates in
more than 500 locations around the world. Johnson Controls securities are
listed on the New York Stock Exchange (NYSE) with the trading symbol "JCI."
The Plymouth, Michigan-based Automotive Systems Group of Johnson Controls
is one of the world's largest suppliers of vehicle seating and interior
systems, and is a major supplier of batteries. In 1998, the company's
worldwide operations will supply interior products for more than 22 million
vehicles. The Automotive Systems Group employs more than 45,000 people at 157
facilities worldwide and achieved $8 billion in sales for the 1997 fiscal
year. During the same period, Johnson Controls, Inc. (all divisions) recorded
sales of $11.1 billion.
RECARO North America, located in Clawson, Michigan, is a unit of the
German seat manufacturer RECARO GmbH & Company (http://www.recaro.com), the world's
largest manufacturer of specialty seats. RECARO seats meet the highest
standards for design, comfort, safety and quality. RECARO designs and
manufactures custom and orthopedic seating products for cars, trucks and
racing applications.
RECARO GmbH & Company, with subsidiaries in the United States, Japan, the
United Kingdom and Malaysia, sells seats in 45 countries and on every
continent. The company currently is supplying 25 passenger vehicles and 19
commercial vehicle manufacturers around the world with seats in more than 50
models. Foreign and domestic sales of RECARO products were more than
$160 million for 1997. Sales of about $200 million are expected for 1998. The
company is a trendsetter for comfort, safety and styling in automotive, light
truck and heavy truck and bus interiors.
SOURCE Johnson Controls