Johnson Controls (JCI) has filed a lawsuit in a Delaware Chancery Court to dissolve the Johnson Controls-Saft joint venture formed in 2006 to develop and manufacture lithium-ion auto batteries.
“Johnson Controls and Saft have a fundamental disagreement about the future direction and appropriate scope of the joint venture,” said Alex Molinaroli, president, Johnson Controls Power Solutions. “The industry is evolving rapidly and the investments needed to achieve market leadership require us to do more than the joint venture has done or can do.”
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JCI said that, as vehicle power train technologies continue to evolve and new markets emerge for advanced batteries, the company must have access to multiple alternative technologies and be able to flexibly participate more broadly.
“This action reaffirms our strategic commitment to the advanced battery industry,” said Molinaroli.
The filing does not affect Johnson Controls-Saft’s current contracts, production orders or programme launches.
“Our commitment to our customers and this market is not changed. All of this activity reflects our long-term commitment to be a leader in [advanced batteries],” said Molinaroli.
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By GlobalDataSaft said it had advised JCI that it “intends to oppose this filing as it sees no legitimate grounds for the dissolution”, the Wall Street Journal reported.
“Saft has made a number of constructive proposals to try to reach a compromise agreement with JCI and avoid any legal procedure. These proposals have been rejected by JCI,” the company said.
The joint venture built a plant in Nersac, France, that opened in 2008 and produces lithium-ion batteries. The group is also building a battery plant in an existing JCI facility in Holland, Michigan. The group has contracts to make batteries for the Mercedes-Benz S-Class and BMW 7-series hybrids and AzureDynamic’s hybrid-electric system. It also is under contract to build batteries for an upcoming Ford plug-in hybrid.
