Going Small Could Mean Big Results for This Micro Hybrid Battery Maker
Johnson Controls said last month that it was able to create a battery pack for start-stop micro-hybrids that have gone from the size of a trunk to the size of a shoebox. For those not familiar with micro hybrid technology, its really a start-stop concept whereas engines stop running when a vehicle is stopped and then they restart when the gas accelerator is used. Additional advances in regenerative braking allow even better energy efficiency since energy from the braking process is now reused to enhance overall fuel efficiency.
So could going smaller be a big winner for Johnson Controls? I believe that it very well could be, especially since many automakers, not just electric vehicle makers, are trying to cut costs and lower overall weight to help fuel economy. That last point is the real catalyst for Johnson considering new CAFE standards for mileage to hit 54.5 miles/gal by 2025 puts the company in a very strong position to benefit from its new, smaller battery pack since they have an existing strong automotive client base here in the U.S.
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The article Going Small Could Mean Big Results for This Micro Hybrid Battery Maker originally appeared on Fool.com.John Licata has no position in any stocks mentioned. You can follow John on Twitter @bluephoenixinc. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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