In 1880 Warren Johnson invented the first electronic telethermoscope: a device to regulate room temperatures. Armed with this fabulous invention, he went on to start his company with an investment of $150,000. Since then, the company has developed, manufactured, and sold systems that can economically regulate building temperatures. Johnson Controls began producing centralized control systems for heat, smoke detection, lighting, and security during the 1960s, and later began to acquire other manufacturing businesses.

Market leader two times over

Today, Johnson Controls is a market leader in the automotive and controls industries. The company currently manufactures seats for Chrysler, General Motors, and Honda, among others. It also builds batteries for Target stores and Interstate Battery System of America. The controls segment of the company provides, well, control systems by providing energy management, temperature and ventilation control, security and fire safety for non-residential buildings. Johnson Controls has also developed control systems for heavyweights AT&T, IBM, and the Mexico City World Trade Center.

Not just bucket seats anymore

In recent years, Johnson Controls' automotive systems group has been expanding from its traditional role as a maker of car seats with two strategic acquisitions. In 1996, the company bought Prince Corp., a maker of automobile electricial parts, for $1.3 billion. In 1998, the company bought Becker Group, Inc., which manufactures car door systems and instrument panels, for $920 million. The two purchases turned Johnson Controls' automotive business into a full-service company with a broader geographic reach. An example of Johnson Controls' expanded offerings? In 1999 the company introduced a television-DVD-VCR unit for car interiors. Since then, JC has also added Electronic Systems USA, the leader in multivendor building automation products and repair services, to offer its customers an even greater source of controls and integration expertise.

The prodigal battery maker

Johnson Controls' battery business, a division of its automotive business, recently won back a crucial client. From 1967 to 1994, Johnson Controls had been Sears' exclusive maker of DieHard batteries. But in 1994 Sears pulled out of the agreement, going instead with a multi-vendor approach. Losing the contract prompted Johnson Controls to cut costs and to raise productivity. In March 1999, Sears had another change of heart and once again awarded its $80 million car battery contract to Johnson Controls. Happy about the reunion, Johnson Controls suspects the contract will comprise 10 percent of the auto division's future revenue.

Taking over the next seat

In July 2000 the company offered $185 million tender for Nissan Motor Co.'s 38 percent stake in Nissan's primary seat supplier, Ikeda Bussan Co. of Japan. Johnson Controls and Ikeda, partners since 1986 in two joint-ventures that supply seats to Nissan in the U.S. and Britain, have long wanted to combine their businesses. Although it currently has no presence in Japan, Johnson Controls will wrap the seat maker's operations into its global operations, but does not foresee any immediate layoffs or major restructuring at Ikeda.