Johnson Controls Inc. (JCI Quick QuoteJCI - Free Report) announced that it will invest $245 million over the 2016−2020 period to double its Absorbent Glass Mat (“AGM”) battery production capacity in North America.

There is a rising demand for power to support vehicle accessories and safety functions. Automotive batteries play an important role in catering to this need for power.

Johnson Controls’ AGM batteries deliver better vehicle starting power even at low levels of charge. They also offer better reliability even in harsh weather and extreme conditions. Additionally, these batteries provide excellent durability in high-load applications.

The demand for replacement batteries has been growing. AGM technology not only satisfies the demand for replacement batteries but also helps improve fuel efficiency by 5% in vehicles with start-stop systems. Owing to strict environmental regulations, vehicles manufactured in North America with start-stop technology are expected to be 50% of the total vehicles produced by 2020. This will boost the demand for AGM batteries.

In order to address the increasing demand for start-stop technology due to government pressure for better fuel efficiency and reduced carbon emission, Johnson Controls is enhancing its AGM battery production capacity. The company expects that the market for new vehicle and aftermarket start-stop batteries will rise to 56 million units worldwide by 2020.

Johnson Controls is a leading battery manufacturer. In order to maintain its position, it will continue investing in battery production and development of factories.
 

JOHNSON CONTROL Price

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Zacks Rank

Currently, Johnson Controls carries a Zacks Rank #3 (Hold).

Some better-ranked automobile stocks include Lear Corp. (LEA Quick QuoteLEA - Free Report) , Oshkosh Corporation (OSK Quick QuoteOSK - Free Report) and Superior Industries International, Inc. (SUP Quick QuoteSUP - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy).

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