Based on the list of new products and technology developments announced by Milwaukee-based Johnson Controls Inc. at the 2006 North American International Auto Show in Detroit and a strong 2006 first-quarter performance, it's hard to believe that the U.S. auto-parts industry is struggling.

The maker of automotive interior systems, car seats and batteries posted a record $7.5 billion in sales for the first quarter of 2006, which ended Dec. 31, 2005. That's up 14% from the same period last year. The quarterly report also shows the company earned a record 86 cents per share, up from 81 cents a year earlier. Net income dropped slightly to $165.4 million from $168.4 million in 2005.

During the auto show, the company introduced the official start-up of its joint venture with French battery manufacturer Saft SA to produce nickel-metal-hydride and lithium-ion batteries for hybrid-electric vehicles (HEVs) and electric vehicles.

Currently nickel-metal-hydride batteries power most HEVs, but lithium-ion batteries likely will become the preferred choice for HEV manufacturers because they offer power, size, weight, cycle-life and cost advantages, according to Johnson Controls, one of IndustryWeek's IW 50 Best Manufacturing Companies for 2005.

Johnson Controls Inc. At A Glance Johnson Controls Inc. Milwaukee Primary Industry: Motor Vehicle Parts Number of employees: 136,000 2004 In Review Revenue: $26.6 billion Profit Margin: 3.1% Sales Turnover: 1.8 Inventory Turnover: 26.3 Revenue Growth: 17.3% Return On Assets: 6.72% Return On Equity: 19.2%

The announcement in Detroit took place nearly four months after the company opened its $4 million research and development facility for lithium-ion batteries in Milwaukee. The new laboratory is part of the company's plan to create and sustain a global center for lithium-ion battery development, the company said in a September 2005 statement.

"We believe that lithium-ion batteries will be the wave of the future, and we're excited to be a leading organization in helping to drive this battery technology forward," said Greg Sherrill, group vice president and general manager of batteries, in the September press release.

The company's involvement with lithium-ion batteries dates back to 2004 when the United States Advanced Battery Consortium granted it a contract for developing an abuse-tolerant lithium-ion battery with extended life and better power-to-weight performance than current hybrid-battery technology.

Other new developments announced at the auto show included a new overhead system that allows vehicle designers more freedom when integrating customer use points, a voice-activated Bluetooth dialing and music-search system and a seating system that provides quicker access to third-row seats in minivans and crossover and sport-utility vehicles.

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