HANNOVER, Germany - Battery manufacturer Varta AG has formed a joint venture with Johnson Controls Inc. and Mexican supplier Grupo IMSA SA de CV to produce and market automotive batteries throughout South America.
In a separate venture, Johnson Controls is joining with IMSA's battery-producing arm Enermex to make batteries in Mexico.
Johnson Controls will pay IMSA $69 million in cash for its contribution to the two ventures, which will operate a total of 10 battery plants and yield annual revenues of $450 million.
Original-equipment customers include BMW, Chrysler, Daimler-Benz, Fiat, Ford, Iveco, Nissan, Peugeot, Renault, Toyota and Volkswagen.
The three partners will also sell to the aftermarket and supply major retailers such as Carrefour and Wal-Mart Mexico.