The Johnson Controls Power Solutions Europe customer magazine

Issue 03/09

ONLY THE MOST INNOVATIVE BRANDS ARE TRULY STRONGDirk Pantle, Marketing Director at Johnson Controls Power Solu-tions Europe, talks to PowerNews about the value a strong brand can offer the trade.

Mr Pantle, 2009 has been a turbulent year. Looking back, what did the VARTA brand do to stay afloat?

Naturally, we too felt the effects

of the economic downturn. We’ve

invested lots of time and energy

into developing innovative sys-

tems, such as those in hybrid ve-

hicles, and we couldn’t have done

it without our collaboration with

nearly all the leading vehicle man-

ufacturers. We’re also extremely

well equipped to provide the right

battery for any new drive system

introduced onto the market. In

this segment, VARTA has a lead-

ing edge over all its competitors.

Together with the retail industry,

we have developed long-term

strategies for sustainable market

success. We focus our efforts not

only on customised solutions, but

also on our marketing.

What technological innovations have you used to support your business partners in the aftermar-ket business?

This year has been characterised

by innovations that set us apart

from generic products. For exam-

ple, our PowerFrame technology

provides a significantly longer

service life and even greater cold

start performance. Such practi-

cal technologies increase VARTA

brand value and make a differ-

ence every day, providing drivers

with significantly more reliability

and power, especially in cold con-

ditions. Furthermore, our AGM

batteries provide peak perform-

ance, even for newer vehicles

with greater energy requirements,

thanks to our experience in sup-

plying the leading car manufac-

turers. In the commercial vehicles

industry, we set a whole new

benchmark with the introduction

of the Promotive Trio in June of

this year. With a complete range

of maintenance-free batteries,

which boast a longer service life

than standard batteries, custom-

ers stand to make significant

savings. We are the only battery

manufacturer to feature calcium-

silver technology and the Laby-

rinth lid for even greater safety in

our commercial vehicle products.

How are these measures marketed?

That’s a good question. All technical

innovations have to be communica-

ted to our business partners >>

Dear readers,

Jean-François BouveyronVice President Independent Aftermarket Johnson Controls Power Solutions Europe

it gives me great pleasure to introduce the third issue of PowerNews. This issue is all about what sets brand-name products apart from their generic coun-terparts. Only major brands are truly innovative and have the means to collaborate with the car industry in develop-ing tomorrow’s solutions. Some of these solutions were presented at this year’s Frank-furt Motor Show: Johnson Controls is actively working with numerous manufacturers to develop innovative hybrid vehicles. The new vehicles presented at the show are equipped with AGM batter-ies provided by Johnson Controls. This new vehicle segment offers a great deal of potential that will benefit the whole industry. It goes without saying that we also wholeheartedly support our wholesalers and retailers. Together with you, we provide expert knowledge, training and effective promotions to successfully showcase the VARTA brand time and time again. I wish you every success over the coming months and look forward to receiving your feedback atjfb-pseurope@jci.com

Recently the Auto Motor Sport magazine, one of Europe’s leading car magazines, conduct-ed its annual survey to identify the best automotive brands. VARTA was awarded second place in the car battery category.

For the VARTA brand, this is a

testament to the company’s suc-

cess and confirms the strategy

it has implemented over the last

few years: a clear brand mes-

sage and innovative products

of the very highest quality. With

such a comprehensive range of

communication materials, we

believe our trade customers are

well-equipped to emphasise

the strength of the brand and

recommend the best-possible

products to their customers.

The survey confirmed that cus-

tomers are aware of the quality

of VARTA batteries, and this is re-

flected in its excellent brand posi-

tioning and high level of demand.

VARTA − A TOp-qUALITY BRAND

The successful launch of the

VARTA Promotive Trio, the

innovative solution for commer-

cial vehicles, was accompanied

by various marketing measures.

In addition to advertising media,

Johnson Controls also developed

a state-of-the-art product film.

The VARTA Promotive Trio sets

high standards in terms of reli-

ability, service life and efficiency.

So it was important for the

product film to be innovative and

communicate the most impor-

tant benefits of the Promotive

Trio: applications, technology

and cost-efficiency. The following

topics were highlighted: With the

Promotive Trio, VARTA provides

the right battery for all applica-

tions. And in terms of technology,

VARTA batteries for commercial

vehicles feature the Labyrinth

lid and are the only commercial

vehicle batteries in Europe to fea-

ture calcium-silver technology.

The topic of cost-efficiency is

illustrated with a conclusive

sample case study which empha-

sises the fact that Promotive Trio

maintenance-free batteries do not

incur service costs, unlike stand-

ard batteries, giving them a clear

advantage. A fleet of 60 vehicles,

each equipped with two standard

batteries requiring maintenance

twice a year, can result in annual

servicing costs of over €7,000.

Talk to your Johnson Controls

sales representative about the

film or go to

www.varta-automotive.com

Our clients can also obtain the

film for use at customer events,

on websites, etc.

INNOVATIVE AND INfORMATIVE

pRODUcT fILM TO SUppORT THE REcENT LAUNcH Of THE pROMOTIVE TRIO

so that they understand the

benefits of the VARTA brand.

That’s why we support our trade

customers with strong brand

campaigns which communicate

VARTA’s excellent reputation and

emphasise the brand’s techno-

logical leadership.

In addition to the “V is for

VARTA” campaign, we’ve made

the Promotive Trio and the

potential savings it provides the

focus of the campaign for the

commercial vehicles segment.

Various measures were used to

consistently communicate the

core message: leaflets, the online

and offline savings calculators,

and - just being released - our

product training film. In this way,

we’ve tried to make it simple for

our trade partners to understand

the benefits of new technologies

so that they can then present

these to customers effectively.

We are currently preparing a

campaign for motorcycle batter-

ies which focuses on the brand’s

true value.

How does this benefit the VARTA

wholesaler and retailer?

When a trade customer opts for

VARTA batteries, they choose to

place their trust in a successful

brand. Unlike generic brands,

VARTA represents innovation,

quality and a striking corporate

identity. The success of this

strategy is reflected in VARTA’s

excellent positioning in the Best

Brand 2009 survey, for instance.

Our trade customers can rest

assured that VARTA will be a reli-

able partner over the long term.

With cutting-edge products that

already provide solutions for all

applications today to the energy

requirements of tomorrow, we

think our customers are already

well aware of the benefits, ena-

bling them to win over customers

with the power and quality of

VARTA batteries.

Mr Pantle, thank you for taking

the time to talk to us.

NoW oNLINE

Of the 20 plus new cars at the

show fitted with our batteries,

nearly a quarter of them featured

a Johnson Controls AGM battery

to support this energy-saving

technology. The technology

enables the conservation of en-

ergy by shutting off the engine

whenever the car stops, such as

at a traffic light. The resulting

decrease in fuel consumption

offers the driver savings of up

to 12 per cent, and lower CO2

emissions.

Driven by EU targets to reduce

CO2, the micro-hybrid market is

accelerating. Since the adop-

tion of Start-Stop technology in

the BMW1 Series, more than a

million micro-hybrid cars with

Johnson Controls AGM battery

power have been sold in Europe.

An estimated 2.5 million micro-

hybrid vehicles will be manu-

factured by 2010, and this is

expected to rise to 10 million

by 2015. The AGM (Absorbent

Glass Mat) battery is an inte-

grated component within the

micro-hybrid battery manage-

ment system, also supporting

more advanced features such as

regenerative braking, intelligent

voltage control and passive

boost in some models.

Before bringing the product to

market, Johnson Controls had

been working closely with the

vehicle manufacturers to over-

come the problem of generating

sufficient power to restart the

engine. In urban driving conven-

tional car batteries were often

found to provide insufficient

charge. To resolve this, the vast

majority of cars, especially those

with more advanced Start-Stop

technology, rely on an AGM

battery. AGM batteries provide

far greater cyclic durability and

recharge acceptance than con-

ventional lead acid batteries. The

technology was originally devel-

oped to cope with the dramatic

increase in electrical consum-

ers in modern cars, leading to

the launch of our VARTA ULTRA

dynamic AGM car battery for the

aftermarket.

Johnson Controls are also work-

ing with the Vehicle Manufactur-

ers to supply the critical data

which is incorporated within the

battery management system’s

software, and so expect to be

able to offer the aftermarket a

complete solution in terms of

product and technical support

for workshops.

“With many micro-hybrid

models from manufacturers like

Audi, BMW, Mercedes, Volvo and

VW reaching the aftermarket,

there will inevitably be pressure

on the battery trade to stock a

complete range of AGM batteries

to meet replacement demand,”

says Tony Miller, European

Automotive Product Manager

for Johnson Controls Power

Solutions.

“As the dominant supplier of

AGM batteries in Europe, with

over 80 per cent of the OE

market, we have the expertise

and the product to support the

aftermarket,” he adds, “and with

micro-hybrids set to become a

mainstream player, the en-

hanced business opportunities

for the European motor trade

will be substantial.”

MIcRO-HYBRID cAR MARKET MOVES TOWARDS THE MAINSTREAMone of the clearest motoring trends to emerge from September’s Frankfurt Motor Show is the growth of Start-Stop technology.

VEHICLE MANuFACTuRER

MoDEL START oF PRoDuCTIoN

Audi A5 Sportback Apr 09

BMW 5 Series GT (2010) Aug 09

BMW X1 (2010) Sep 09

Hyundai iX35 (2010) Apr 10

Mercedes-Benz E-Class Convertible (2009) Oct 09

Mercedes-Benz E-Class T Model (2009) Oct 09

Mercedes-Benz SLS AMG Dec 09

Mini Colorado (2010) Sep 10

Volvo S60 (2011) May 10

Audi A5 Sportback, micro hybrid

Johnson Controls is prepared for the future: vehicle manufacturers showcased the following models featuring AGM micro hybrid technology (stop-start functionality) at this year’s Frankfurt Motor Show. Johnson Controls Power Solutions Europe developed the new technologies in collaboration with vehicle manufacturers.

UK cONSUMER BUYING TRENDS SpELL OppORTUNITIES fOR VARTA UK TRADE cUSTOMER

It seems that the roller coaster of rising and falling commodity prices is picking up speed again, with extraordinary movements in the price of lead on the London Metal Exchange during August and September.

Whereas in the past, lead would not move by more than 100 points over an entire year, now we are seeing swings of $US 500 per month, making it extremely diffi- cult to predict and control new battery pricing, where such a high proportion of the cost depends on this simple raw material.

The recent increases in lead values have been attributed to the closure of a huge proportion of Chinese lead smelting capacity, following the exposure of a major contamina-tion scare. Sadly, these events are relatively common in China, and highlight the hidden costs of lax environmental controls, together with the uncontrolled economic development that seems to en-capsulate some areas of business growth in the Far East.

It is probably worth asking wheth-er the consumer in this country would actually knowingly pay for a product made with materials that have poisoned many hundreds of people during their manufacture. It also highlights one reason why high quality OE-accredited brands and products have a higher price than so called bargain basement products.

At JCI, with the environmental con-trols already in place and all Euro-pean plants certified to ISO 14001, we ensure that our products have the minimum effect on the environ-ment. Simply put, that costs a lot of money to implement and main-tain, but we believe the total price, human and commercial is worth paying.

Dear Customer,

Paul Matarewicz Managing Director UK and Ireland

The BLACk dynamic battery

forms part of our Trio range of

aftermarket car batteries, and is

designed specifically to meet the

power requirements of cars over

seven years old. More than 40

per cent of all vehicles in the Uk

car parc fall into this category,

giving independent workshops a

market in excess of six million

cars to service and repair.

Recent polling has shown that

the credit crunch is causing

more drivers to think about

maintaining their existing cars

than buy new – a view support-

ed by the slow impact of the

Government’s scrappage

scheme on new car sales. A new

survey by GIPA Uk of buying

intentions in 2009 suggests that

82 per cent of drivers will be

keeping their current car.

Cars over seven years old have

traditionally been the domain of

the independent service sector,

but many mid-range and all

prestige models manufactured

between 1995 – 2002 will still

need a relatively sophisticated

battery specification to meet the

demands of higher-tech engines

and numerous electric consum-

ers such as ABS, traction control

and air conditioning.

The trend to keep cars on the

road longer represents an

opportunity for the VARTA trade

customer to cater for the older

car market with BLACk dynam-

ic. The GIPA Uk Drivers Survey

2009 shows that the four most

important criteria for consumers

when buying a new car battery

are price, advice from sales

staff, effectiveness of the

product and trust in brand. With

the VARTA BLACk dynamic,

owners of older cars using

independent workshops will be

reassured by a trusted brand

from the world-leading battery

manufacturer, and by a battery

of the same specification as the

original at a competitive price.

The research also shows that

counter staff are key influencers

in the consumers’ battery choice

and so should ensure they sell

up where appropriate.

Although the specification of

this replacement battery is

typically compatible with OE

batteries fitted by European car

manufacturers in the mid-

1990’s, it does incorporate our

patented PowerFrame grid

technology to provide longer

service life, improved perform-

ance and greater corrosion

resistance.

Owners of somewhat newer

cars and older models retrofit-

ted with accessories such as

satellite navigation and DVD

players should be encouraged

to opt for the VARTA BLUE

dynamic product, which offers a

more advanced specification,

while the VARTA SILVER

dynamic is a heavy duty battery

designed for top end models.

Some evidence suggests that more cash-strapped drivers plan to keep their cars on the road for longer rather than take advantage of the scrappage scheme in the current economic climate, so now is a good time to promote our VARTA branded BLACk dynamic battery to independent workshops and repairers.

A motorcycle rider who picked up a “Give me a VARTA-V” competition entry form at a local motorcycle parts wholesalers has won a brand new Gilera Runner 50 SP scooter in a pan-European competition.

David Tremino entered the

competition after visiting Beks

Wholesale, our Sussex- based

motorcycle battery distributors.

He had to upload a photo of him-

self on his stationary motorcycle

displaying the familiar VARTA

Victory-V sign and submit it to

their website for a free prize draw

run in Britain and eight other

European countries.

David’s sister Veronica was pre-

sented with the scooter at Beks

Wholesale at the end of July by

VARTA Marketing Manager Angie

Mavar together with Roger keys,

the proprietor of Beks Wholesale

and manager to Grand Prix biker

Scott Redding.

Another British winner, Calum

Smith of Carlisle in Cumbria, has

won one of 20 TomTom Rider

motorcycle navigation systems

also on offer.

The competition supported

the launch of our new VARTA

Funstart motorcycle battery

range in Spring this year.

There’s no better time than now

to review how you are commu-

nicating the VARTA brand to the

end user. To this end, we have

re-vamped our exterior display

material for this season. Our tried

and tested, popular “free bat-

tery check”sign and our exterior

stockist sign are now available

in our distinctive new corporate

style, and should be displayed

this winter to full effect. Please

ensure you have our only up-to-

date exterior material on display

in a prominent position, as this

will not only look more profes-

sional (in communicating only

one consistent style and brand

message) but make it easier for

the consumer to associate your

business easily with batteries, so

that your name is the first called

to mind in the event of battery

failure. And when it comes to

internal display, we have on offer

a full suite of material, from off-

the-shelf items such as posters,

leaflets and countermats, right

through to high value items such

as our new-look battery stands

and dummy BLUE dynamic

batteries. Please note that due

to the high cost of the items in

question, articles such as battery

stands and dummy batteries are

chargeable. Please contact your

main VARTA distributor for more

information.

WORTHING WINNER IN EUROpEAN BATTERY pRIZE DRAW

TAKE THE VARTA MESSAGE TO THE END USER THIS WINTER

Veronica Tremino (centre) pictured with Roger Keys of Bek Wholesale and Angie Mavar, Marketing Manager for the VARTA batteries in the UK.

New look exterior signage for the 2009 battery season

The new FunStart range launched earlier this year.

FREEBATTERY

CHECK

FREEBATTERY

CHECK

pOWERfUL VARTA BATTERIES AS GOOD AS THE ORIGINALEvery year, car manufacturers

bring out new models, most of

them equipped with lots of elec-

tronic equipment. These require

high-quality batteries that can be

relied upon unconditionally –

today and tomorrow. When re-

placing the battery, it’s important

to fit one that’s as good as the

original, as this is the only way

to make sure that the vehicle’s

power requirements continue to

be met. Johnson Controls Power

Solutions Europe is prepared for

such situations, with batteries

to fit even the newest cars. This

overview lists the latest models

and the VARTA batteries for them

as recommended by Johnson

Controls. As a high-end product

for vehicles which demand high

performance, we particularly

recommend the VARTA SILVER

dynamic range.

New information will be included in the next edition of the VARTA car application guide, which is based on the latest European data.Please note not all countries stock the entire European range. The battery search at www.varta-automotive.com is constantly updated.

Absorbent Glass MatTECHNoLoGyAGM

MoDEL AVAILABLE FRoM

ENGINE uLTRA SILVER BLuE

Audi A8 Nov 09 Petrol/diesel 595 901 085 600 402 083

610 402 092595 402 080

BMW

5 Series GT Aug 09 Petrol/diesel570 901 076

595 901 085

X1 Sep 09 Petrol/diesel570 901 076

595 901 085

Jaguar XJ Feb 10 Petrol/diesel 595 901 085 600 402 083 595 402 080

E Class Convertible Oct 09 Petrol/diesel570 901 076

595 901 085

Mercedes E Class T Model Oct 09 Petrol/diesel570 901 076

595 901 085

SLS AMG Dec 09 Petrol 595 901 085

Rolls Royce Ghost July 09 Petrol 595 901 085

Skoda Superb Estate Okt 09 Benzin/Diesel 570 901 076 577 400 078

563 400 061

574 012 068

560 408 054