Johnson Controls getting out of the battery business

[Mr._Graybeard]

This completes a big change in the company's business strategy -- auto components (batteries and seats) accounted for two-thirds of JC's sales before it merged with Tyco Int'l in 2016. It sold off the seat division almost immediately after the merger.
https://www.jsonline.com/story/money/business/2018/11/13/johnson-controls-sell-automotive-battery-business-13-2-billion/1987434002/

 

[Bamaman]

There are only about three large manufacturers of car/truck batteries in North America. Maybe those Canadian hedge funds will move some of the production to Canada--since batteries are not exactly the cleanest of businesses with all their acid runoff.

I have been amazed at how expensive car batteries are since I had to buy three last year. The price of lead appears to really be up.

 

[Mr._Graybeard]

I have a low opinion of the CEO who ran JCI from late 2013 to late 2017, Alex Molinaroli -- he orchestrated the Tyco merger in large part to take advantage of Ireland's easy corporate taxing structure. He also started the move to shed the automotive businesses.

On a more personal note, he got into an extramarital affair with a business consultant and invested a chunk of his own wealth in a Ponzi scheme. The day he took over, 10/1/2013, the stock closed at $36.75. It's trading today at $33.56.

JCI eased him out the door with a fat severance package worth at least $63 million and replaced him with a guy who spent 20 years with GE. We'll see how that works out.

https://www.jsonline.com/story/money/business/2017/09/02/molinaroli-left-his-mark-johnson-controls-his-brief-but-tumultuous-tenure-chief-exec-now-question-ho/624124001/

As for batteries, I'm from the Milwaukee area but I prefer East Penn/DEKA batteries when I can get them. Johnson Controls has gone big into Mexico for battery manufacturing and recycling.

 

[jazz4cash]

It seems to me that battery technology has great potential with the development of EVs and increasing electrification. I expected 24V systems would’ve become standard in US by now. I had JCI on my watchlist but the more I learned about them, the less interested I became.

 

[ncbill]

JC used to be the battery OEM you wanted to buy for your next auto battery.

Wonder who Interstate will use now?

 

[jazz4cash]

JC used to be the battery OEM you wanted to buy for your next auto battery.

Wonder who Interstate will use now?

Interstate will use whoever purchases the business from JCI. If JCI can’t transfer major accounts to the buyer, the value of the business will tank.