Seats Critical to Vehicle Experience, Customer Loyalty, J.D. Power Study Finds

Johnson Controls, Inc. Captures Three Segment-Level Seat Awards

DETROIT: 25 August 2016 — Seat features improve the customer experience with their vehicle and seat quality enhances customer loyalty, according to the J.D. Power 2016 Seat Quality and Satisfaction Study,SM released today.

“Consumers are focusing more attention on the interior design and comfort, and the seats are a critical element of the vehicle’s interior,” said Brent Gruber, senior director, global automotive division at J.D. Power. “Automakers and suppliers are responding by adding content and materials to the seats that create a sense of luxury and enhance the look and feel of the seating. Interior styling is an important consideration for consumers when shopping for a new vehicle.”

Among new-vehicle shoppers, 18% indicate they avoided a vehicle for purchase because of interior design.1 The most often cited reason for avoiding a vehicle based on its interior is that it was “too bland or boring.”

“Seats have always been an important styling element and touch point in the vehicle, but that importance is increasing as automakers try to differentiate their models in a competitive market,” said Gruber. “We expect that continue as the industry moves toward autonomous vehicles and the seat becomes an integrated part of the evolving vehicle environment.”

Automotive suppliers are adding technology and materials to their seats in an effort to deliver comfort and luxury to vehicle owners. Including features such as leather and heated and ventilated/cooled seats not only boosts satisfaction, but it also enhances owners’ sense of luxury with their vehicle. For example, among owners of mass market vehicles, the addition of ventilated seats increases overall seat satisfaction by 0.53 points (on a 10-point scale), on average, and lifts the perception of the vehicle’s luxuriousness by 0.87 points (on a 7-point scale.)

Additionally, seat satisfaction has an impact on intended vehicle loyalty. Among owners who rate their overall seat satisfaction 10 (on a 10-point scale), 68% say they “definitely will” repurchase the same vehicle make again. When satisfaction slips to 9, intended loyalty drops to 45%, while only 32% of owners who rate their seat satisfaction 7 intend to purchase the same vehicle make again.

The study provides automotive manufacturers and suppliers with quality and satisfaction information related to seating systems. New-vehicle owners are asked to rate the quality of their vehicle’s seats and seat belts with respect to whether they have experienced defects/malfunctions or design problems during the first 90 days of ownership.

Seat Supplier Quality Rankings Among seat suppliers, Johnson Controls, Inc. receives three segment awards for seat quality, while Lear Corporation receives two, and Delta Kogyo Co., Ltd., Boshoku Corporation and TS Tech Co., Ltd. receive one award each.

1 Source: J.D. Power 2016 U.S. Auto Avoider StudySM

Johnson Controls, Inc. ranks highest in the mass market compact SUV/MPV segment for the Compass; the mass market midsize/large car segment for the Toyota Camry2; and the mass market truck/van segment for the Ford Super Duty (tie).

Lear Corporation ranks highest in the segment for the Cayman and the mass market truck/van segment for the Silverado (tie).

Delta Kogyo Co., Ltd. ranks highest in the mass market segment for the MX-5 Miata. Corporation ranks highest in the mass market midsize/large SUV segment for the Toyota 4Runner. TS Tech Co., Ltd. ranks highest in the luxury SUV segment for the RDX.

The 2016 Seat Quality and Satisfaction Study is based on responses from more than 80,000 purchasers and lessees of new 2017 model-year cars and light trucks. The study was fielded from February through May 2016.

Media Relations Contacts John Tews; Troy, Mich.; 248-680-6218; [email protected] Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]

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# # # Note: Two charts follow.

2 Johnson Controls, Inc., award is for its seats supplied for Toyota Camry assembled at the Georgetown, Ky., plant. J.D. Power 2016 Seat Quality and Satisfaction StudySM

Top Three Seats per Segment Overall Quality Problems per 100 Vehicles (PP100)

0.0 2.0 4.0 6.0 8.0 Luxury Car Lear Corporation (Porsche Cayman) 1.3

Lear Corporation (Porsche 911) 2.6

Lear Corporation (Audi A4*) 2.7

Mass Market Compact Car Delta Kogyo Co., Ltd. (Mazda MX-5 5.7 Miata) Johnson Controls, Inc. ( Cascada) 5.9 Hyundai Seat Division (Hyundai 6.0 Elantra**)

Mass Market Midsize/Large Car Johnson Controls, Inc. (Toyota 1.8 Camry***) TS Tech Co., Ltd. ( Accord***) 2.0 Johnson Controls, Inc. ( 3.5 Altima***)

NOTES: * Lear Corporation’s ranking in the luxury car segment is for its seats supplied for the Audi A4 assembled at the Neckarsulm, Germany, plant. ** Hyundai Seat Division’s ranking in the mass market compact car segment is for its seats supplied for the Hyundai Elantra assembled at the Ulsan Plant 2/Ulsan Plant 3, Korea. *** Johnson Controls, Inc.’s ranking in the mass market midsize/large car segment is for its seats supplied for the Toyota Camry assembled at the Georgetown 1/Georgetown 2, Kentucky, plants. TS Tech Co., Ltd.’s ranking in the mass market midsize/large car segment is for its seats supplied for the assembled at the Marysville 1, Ohio, plant. Johnson Controls, Inc.’s ranking in the mass market midsize/large car segment is for its seats supplied for the Nissan Altima assembled at the Smyrna 2, Tennessee, plant. Source: J.D. Power 2016 Seat Quality and Satisfaction StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power. J.D. Power 2016 Seat Quality and Satisfaction StudySM

Top Three Seats per Segment Overall Quality Problems per 100 Vehicles (PP100)

0.0 2.0 4.0 6.0 8.0 Luxury SUV TS Tech Co., Ltd. (Acura RDX) 2.5

Johnson Controls, Inc. (Audi Q3) 4.1

Magna (Audi Q5) 4.1

Mass Market Compact SUV/MPV Johnson Controls, Inc. (Jeep Compass) 4.7

Magna (Ford Escape) 4.8

Magna (Chevrolet Equinox) 4.9 Mass Market Midsize/Large SUV Toyota Boshoku Corporation (Toyota 3.9 4Runner) Magna (Ford Edge) 5.3

Magna (Jeep Grand Cherokee) 5.9 Mass Market Truck/Van Johnson Controls, Inc. (Ford Super Duty) 3.8

Lear Corporation (Chevrolet Silverado) 3.8

Faurecia (GMC Canyon) 4.1

Source: J.D. Power 2016 Seat Quality and Satisfaction StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power.