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Puebla Plant August , 2008

Puebla Plant August , 2008. Plant Profile. JCAM Puebla Calle Patxi 201, Parque Industrial “Bralemex” Cuautlancingo, Puebla, Mexico. VW. Lear. JCI Conforseat. Puebla JIT. Nissan Civac. Final Assy Metal. Complete Seat. Cut & Sew. Cut & Sew Process VWM (A4, NB, NBC, A5)

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Puebla Plant August , 2008

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  1. Puebla Plant August, 2008

  2. Plant Profile JCAM Puebla Calle Patxi 201, Parque Industrial “Bralemex” Cuautlancingo, Puebla, Mexico VW Lear JCI Conforseat Puebla JIT Nissan Civac

  3. Final Assy Metal Complete Seat Cut & Sew • Cut & Sew Process • VWM (A4, NB, NBC, A5) • Ford (PN 96 F150, P356 F350) • Nissan (D22 Pick up) • GM (GMT 900, Kodiak) • Metal Frame Final Assembly • Structures (A4, NB, NBC, A5) Jetta A4, New Beetle, New Beetle Cabrio, Jetta A5 / BORA D22 / Nissan Plant Profile

  4. Turn Over FY 07-08 Summer personal relocation Periodical migration to USA

  5. Absenteeism FY07 Christmas activities

  6. Plant Facility Data 1997 Expansion by renting new building in order to receive the Jetta A4 & NBL March, 2000 Moving the 1° productive process to the new MEQ Plant 1996 New Production line from Tlaxcala to Puebla - Finsa Facility April, 2000 100% production in MEQ Plant 2008 D22 Complete Seat Assembly from Naucalpan to Puebla Our History 2000 Metal Frame final assembly from Tlaxcala to Puebla (Footprint) 2002 Cut & Sew from Tlaxcala to Puebla 2007 National Programs from Autoasientos (Tlazala) to Puebla

  7. Start Up History Jetta A4 Trim Development Foam development Metal frame development NBL – NBC PQ35 Adaptation Metal development Mechanism development Foam development Trim development Plastic development Jetta A3 SOP Jetta A3 at Puebla Re launch Jetta A4 SOP New Beetle Limousine Jetta A5 Top Sport Metal development Mechanism development Foam development Trim development SOP NBC PQ34 Metal development Foam development Trim development Plastic development SOP Jetta A5 NAR NBL

  8. Statistics and Facts • Gold Award on JCI Quality Olympics: 8 consecutive years • ISO / TS 16949:1999 • Update ISO / TS 16949:2002 • Safety Gold Award: 4 consecutive years • Environmental Gold Award: 4 consecutive years • Building: • Manufacturing 73,276 sq ft 6,810 m2 • Offices,Labs & Services 24,920 sq ft 2,316 m2 • Warehouse 46,279 sq ft4,301 m2 • Total 144,475 ft2 13,427 m2

  9. Merit Award Recognition 1. “Johnson in Family” Project dedicated to integrate to the personnel's family with different activities 2. Foot Print Tlaxcala, Puebla Cut & Sew process movement from Tlaxcala to Puebla JIT facility 3. Demerit Points Reduction in Jetta A5 FSB found in Internal Audits before SOP Reduce 100% of the demerit points caused by the FSB in the internal audits before the Jetta A5 launch. 4. Hurricane “Stan” & Johnson Controls aid October 16th - Johnson Controls´ personnel traveled to Zacapoaxtla with a lot of enthusiasm with the objective to deliver the help collected at the plant. 5. Takata For avoiding the shutdown of Volkswagen Mexico production line due to the explosion at the supplier TAKATA MONCLOVA MEXICO plant. This vendor supplies the Side Air Bag modules for the New Beetle platform. 6. Foot Print National Programs 2007. Cut & Sew process from Autoasientos (Tlazala) to Puebla. Ford, Nissan and GM Programs. 7. Warren Johnson Educational Center JCAM Puebla, seeking help its collaborators and the community, creates the “Warren Johnson Educational Center ”, where the personnel and their families are allowed to continue with their basic education.

  10. Programa Nutrición Employee Initiatives Hand by hand We all are part of oursecurity! Nutritional Program Johnson Controls In Family Health and well-being A balance life our strength is in our people's values Studies center You´re human, yóu´re fragil Take care! Move up To make qualify seats in sure form, is commitment of all Let us add efforts! Solutions Management

  11. History • Since June 2007 some labor issues were detected in the region. • An Association named CAT (Centro de Atencion al Trabajador – Workers Attention Association-) lead by Blanca Velazquez Diaz has been trying to recruit workers from different companies in Puebla (like Faurecia, Lear, Siemmens, Alcoa, MexMode, etc) to form a new union. • JCI appears to be next company and further create unstable labor condition. • Blanca characterized herself as a very active member with an apparent goal to change Unions. • After investigating with the different companies as well as different unions, the real goal is to create unstable labor condition in the region. Some information says that American unions could be behind this. • UAW sent a letter to Mr. John Barth on August 23, 2007. Draft replay to the letter initiated by Patrick Page in the following days.

  12. Strategy • Meeting with companies located in the same industrial park to establish agreements for open communication and share information about CAT: • Faurecia • Alcoa • SAS Automotive • Lear • Volkswagen • Johnson Controls • Regular communications to HR Corp Mex., Ops Director NA, Public Relation NA. • Legal counsel support and review of activities for adequacy compliance to Mexico labor law. • Early involvement of State and Federal authorities to achieve adequate support and guidance.

  13. Government Involvement • Frequently meetings with Local and Federal Government • They have offered 100% support • Many visits to the plant in important events (Vison Week, etc)

  14. Customer (Volkswagen) • Many visits of HR Volkswagen top management • Involvement in the labor issue to support in any way Johnson Controls wants • Confirmation that JCI is proceeding according to the law.

  15. Current Status • Due to process optimization and efficiency, the plant has reduced headcount in the past months in several areas: • Beginning of 2007: • 41 Directs • 9 Indirects • 8 Salaries • End of 2007 (JC49 project transferred to JCI Conforseat Toluca) • 96 Directs • 5 Indirects • August 2008 • 15 Directs

  16. Index 1 Government Involvement Close communication between authorities and company to agree how to proceed Several recognitions by authorities to Human Projects

  17. Index 2 Government Involvement • Letter sent by authorities confirming that Johnson Controls is proceeding according to Mexican laws and the information from this group is not based in any legal basis. • They recognize our engagement and programs for the people. They are proud to have a company like JCI Puebla • They confirm the support.

  18. Index 3 Government Involvement • Meeting with Federal authorities and personal interview with Javier Lozano, Federal Officer for Labor (who reports direct to Mexican President –Felipe Calderon-)

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