General Motors Recognizes Johnson Controls as First Winner of Automaker’s Diversity Champion Award

Interior supplier best exemplifies goals of GM’s diversity procurement process

PLYMOUTH, MICHIGAN, U.S.A. (October 4, 2001) – Johnson Controls (NYSE: JCI) has been recognized by General Motors with the automaker’s 2001 Diversity Champion Award for outstanding development of minority-owned supply companies. This is the first year that the award has been presented by General Motors to a tier-one supplier.

Rudy Paluch, vice president and general manager of the General Motors Business Unit for Johnson Controls, accepted the award from Bo Andersson, GM executive in charge of worldwide purchasing, at a September 25 event held at the General Motors Technical Center in Warren, Michigan.

Andersson said the company’s Diversity Champion Award is being presented annually to the tier-one supplier that best exemplifies the goals of the automaker’s diversity procurement process and "goes the extra mile" to help GM develop minority companies.

GM’s requirements for the award include:

Setting measurable minority procurement goals of at least 6 percent of a supplier’s total GM sales;

Integrating minority suppliers in their global purchasing activities;

Forming strategic alliances to allow supplier innovation; and

Creating mentor programs that provide business development guidance, technical expertise and subcontracting opportunities for minority suppliers.

"Johnson Controls’ record of supporting our diversity procurement activities and in developing minority companies and innovative mentoring programs is an outstanding accomplishment," said Andersson. "We salute them for their leadership and commitment to minority sourcing."

Harold Kutner, group vice president of GM worldwide purchasing, said Johnson Controls’ Bridgewater Interiors joint-venture manufacturing facility in Detroit is a good example of GM’s commitment to supporting alliances between its tier-one suppliers and minority-owned companies. Bridgewater Interiors supplies complete seat systems for Cadillac DeVille models assembled in Hamtramck, Michigan.

"We worked closely with Johnson Controls to develop Bridgewater Interiors – a highly competitive seating supplier for our flagship Cadillac DeVille," said Kutner. "In fact, Bridgewater’s Cadillac seats were ranked very high by J.D. Power and Associates in a recent study."

As a global market leader in automotive interior systems, automotive batteries, and facility management and control systems, Johnson Controls will purchase goods and services valued at more than $505 million from diverse suppliers in fiscal-year 2001. Of that total, the company’s purchases for GM programs are expected to exceed $150 million.

"We are honored to be recognized by General Motors as the first recipient of the GM Diversity Champion Award," said Mike Lamach, group vice president of customer business units for Johnson Controls. "Our goal has always been to support our customer, General Motors, and their various diversity procurement activities while expanding business opportunities for minority firms."

In 2003, Johnson Controls plans to purchase $1 billion in goods and services from diverse suppliers, including companies owned by minorities and women. Of that total for 2003, Johnson Controls will increase its purchases from diverse companies for GM programs to approximately $170 million.

Johnson Controls has intensified its development efforts with diverse sources of supply as a key method to gain competitive advantages throughout its automotive and controls businesses. It currently has more than 1,100 diverse suppliers corporate-wide. Within the Diversity Supplier Business Development model at Johnson Controls, "diverse" suppliers include companies that are owned by minorities, women or veterans – and those that are designated by government agencies as small businesses or disadvantaged businesses.

In recent years, Johnson Controls has been recognized as an industry leader in diversity and in supporting minority-owned companies. This week, the company was honored as "Corporation of the Year" by the Michigan Minority Business Development Council (MMBDC) for the fifth time in six years. MMBDC, a voluntary organization with more than 2,000 members, works to create links between major corporations and minority businesses.

Johnson Controls, Inc. is a global leader in automotive systems and facility management and control. In the automotive market, it is a major supplier of seating and interior systems, and batteries. For non-residential facilities, Johnson Controls provides building control systems and services, energy management and integrated facility management. Johnson Controls, founded in 1885, has headquarters in Milwaukee, Wisconsin. Its sales for 2000 totaled US $17.1 billion.

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