Profile: Johnson Controls Inc. is a three-pronged American auto parts maker. The company operates a building efficiency segment, automotive experience segment, and power solutions unit. The efficiency segment that produces air conditioning, controls, and security equipment maker. The automotive experience segment designs and manufactures interior products as well as designs and manufacture cockpit, overhead, and door systems. Finally, the power solutions unit makes car batteries. 
The company was founded in 1885 and has its headquarters in Milwaukee, Wisconsin.
Thesis
The automotive industry was crippled during the Great Recession. Automobile sales, across the board, were down, and auto parts makers were hit hard by the lack of demand. that hurt automotive sales around the world as consumers avoided big-ticket items. 2010, however, has breathed life back into the automotive industy as sales have risen exceptionally throughout the year. Projected sales this year are over 11 million, while 2009 only saw 4.8 million sales. One auto parts company in the USA looks poised to take advantage of the resurgence in the American market and its positioning in the growing Chinese automotive market.That company is Johnson Controls Inc.
The American auto market has seen great recovery thus far in the USA. August was the first month in 2010 that was not higher year-over-year, but this was caused by the Cash for Clunkers craze that struck last August. In July 2010, GM pulled a 25% increase in sales year-over-year of its four remaining brands. Ford pulled in a 3% rise. The significant year-over-year gains will slow down, but as long as things continue to get better, it is a good sign for the auto industry. Many estimates have US sales increasing to 20 million by 2015, and an auto parts maker like Johnson Controls will be at the forefront of this uptick in sales. This is because JCI supplies auto parts to every American company, and its parts are being used in nearly every 
model. Further, the company is dedicating to diversification in two ways: China and electric cars.
The Chinese industry became the leader of automotive sales in 2010, and it looks poised to continue to grow throughout the coming years. Chinese auto sales are estimated to grow 55% by 2015, according to JDPower.com, from nearly 9 million to over 13.5 million sales. Johnson Controls has recognized the future and opportunity in China, and the company will build three to four new plants by 2015. The company…
