Chery Forms Joint Venture with Johnson Controls: Writing a New Chapter for China’s Automobile Components Manufacturing Industry

— Johnson Controls (Wuhu) Automotive Interiors Co., Ltd. Opening

Wuhu, Anhui, China (April 14, 2008) — Johnson Controls (Wuhu) Automotive Interiors Co., Ltd. officially announced its grand opening today. The company is the first professional joint venture for interior systems and components between Chery, the pioneer of national independent automobile brands in China, and Johnson Controls, a global leader in the automotive interior industry. The opening of this company marks the beginning of a strategic cooperation between Johnson Controls and Chery Automobile in China. It will bring new opportunities for the Chinese automotive components market and improve the international competitiveness of domestic vehicle components.

Johnson Controls (Wuhu) Automotive Interiors Co., Ltd. was jointly founded by Johnson Controls, Chery Technology Co., Ltd. which is under Chery Automobile Co., Ltd., and Shanghai Jiehua Automobile Decorative Research Center. It mainly produces vehicle interiors, including instrument panels and consoles, pillar, and door panels. It also provides R&D service for related products to support the independent development and manufacturing of Chery Automobiles. The joint venture has a registered capital of $12.75 million with total investment of $30 million. The first-phase factory covers 11,000 square meters. The combination of Johnson Controls’ advanced technologies and successful experiences in automotive interior solutions and the high-quality production capacity of Chery Automobile will guarantee that the joint venture will use leading management systems, purchasing operation systems, production systems and manufacturing operation systems of international standards, and provide quality service to Chery customers, meanwhile Johnson Controls will supply Chery world class products with comfort, safety, sustainability to meet EU and NA standard.

Johnson Controls is committed to creating a more comfortable, safe and sustainable world. The new factory of Johnson Controls (Wuhu) Automotive Interiors Co., Ltd. in Anhui Wuhu Economics & Technology Development Area is an example of this. It is the first "Green" factory that was constructed according to LEED (Leadership in Energy & Environmental Design) Criteria in the area. The energy-saving system used by the plant can reduce heat absorption from sunlight and optimize natural lighting effects, lowering energy costs by 15% -25% against U.S. industry standards (ASMRAE90.1). Meanwhile, it greatly enhances the comfort of the working environment by improving air quality indoors, adopting environmentally-friendly materials as much as possible, using natural lighting and lighting designs, glare control, improving visual comfort and taking other measures to increase staff satisfaction and as a result their loyalty to the enterprise. The completion of the new factory will become a Green model project for the automotive component manufacturing industry in Wuhu, and even in China, writing a new chapter for China’s component manufacturing industry.

"Our goal is to create smart environments with the hope that we can offer new innovative technologies for the automotive interior to the Chinese market to satisfy people’s growing demand for automobile safety, comfort and sustainability," said Eric Mitchell, group vice president and general manager China for the Automotive Experience business of Johnson Controls, at the opening ceremony. "In addition, Johnson Controls’ presence in Wuhu will also bring a global view to the local human resource market. The advanced technological expertise, high-quality training and mechanisms, as well as the internationalized platform for talent development will help local people improve their competitive advantage."

Biren Zhou, vice president of Chery Automobile Co., Ltd. and general manager of Chery Technology Co., Ltd., also expressed that Chery was confident in the prospects of its cooperation with Johnson Controls. He said, "Our cooperation with Johnson Controls is comprehensive and not just involved in simple components provision. The establishment of the joint venture will support the demand for Chery Automobile’s continuous launch of new car models, quality improvement, and international market expansion. We will take in, digest and absorb advanced professional know-how and experience from Johnson Controls, so as to continuously enhance the international competitive advantage of the Chery Automobile brand and to create an independent innovation-oriented brand of the national automobile industry. "

About Johnson Controls
Johnson Controls (NYSE: JCI) is the global leader that brings ingenuity to the places where people live, work and travel. By integrating technologies, products and services, we create smart environments that redefine the relationships between people and their surroundings. Our team of 140,000 employees creates a more comfortable, safe and sustainable world through our products and services for more than 200 million vehicles, 12 million homes and one million commercial buildings. Our commitment to sustainability drives our environmental stewardship, good corporate citizenship in our workplaces and communities, and the products and services we provide to customers. For additional information, please visit

About Chery Automobile
Chery Automobile Co., Ltd. was founded by five local state-owned investment companies of Anhui province in 1997 with registered investment of RMB 1.752 billion. With ten-year leapfrog development, Chery Automobile has owned the independent R&D capability, independent intellectual property rights, and core technology on automobile, engine and part of key components. Chery has become the biggest national brand in automobile research, manufacturing, sales, and export. On August 22, 2007, Chery completed the linear production of the 1 million cars representing that Chery has achieved the first-phase goal in building national brand through independent innovation, and is marching towards the new goal of building international brand through opening innovation.

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