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DETROIT -- Johnson Controls Inc. is laying the groundwork for a global restructuring that will reduce jobs and shut down plants, with about half of the changes due for its auto interior business.

The company said it would take a restructuring charge between $450 million and $500 million during its fourth quarter.

JCI would not provide further specifics during its announcement today, but CEO Keith Wandell said the restructuring is aimed at staying ahead of the "changing dynamics we see in the various markets that we serve."

That includes a "conservative" JCI estimate for a North American auto production level in 2009 in the "mid-12 million" vehicle range, said Bruce McDonald, executive vice president and chief financial officer in a conference call with analysts. That's down from 2007 production level of 15.4 million vehicles, and even down from early estimates for 2008 of about 14 million vehicles -- a number that has been adjusted down throughout the year as fuel prices rose and consumers stopped buying.

"The climate in that business has changed radically in the last six to nine months," McDonald said. "In automotive … our charges reside in taking the actions that we need to do, to downsize our business to that production level."

The company sees "little if any signs" for when business will pick up, so JCI will use the mid-12 million estimate to plan for both 2009 and 2010, and build on that level when conditions improve, he said.

JCI, based in Milwaukee, with its auto interior operations in suburban Detroit, wants to meet with workers and local officials before making any announcements about where and how it will cut positions. It expects to release that information during an Oct. 14 meeting with analysts.

The company said half of its restructuring will take place within the auto business, with another 30 percent in its building efficiency business and the rest in its battery and power unit.

In July, JCI expanded its auto manufacturing operations in North America when it became the majority owner of 29 former Plastech Engineered Products Inc. plants, now operating under the name JCIM LLC.

North America will not be the only region affected, Wandell noted.

In Europe, the company needs to reduce excess capacity -- especially in Western Europe -- and transfer work to lower cost regions in Eastern Europe, just as its automotive customers have shifted production to the area.

JCI does not expect the same decline in the auto market in Europe that it has experienced in North America, McDonald said, but the company does anticipate slower growth.

JCI ranks No. 7 on the Automotive News list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $18.50 billion in 2007.

PRESS RELEASE: Johnson Controls Announces 2008 Fourth-Quarter Restructuring Charge

MILWAUKEE, Sept. 3 /PRNewswire-FirstCall/ -- To better align its resources with its growth strategies while reducing the cost structure of its global operations, Johnson Controls, Inc. today announced it plans to initiate restructuring activities which will result in an estimated pre-tax charge of $450 to $500 million in its 2008 fourth quarter.

The restructuring charge relates to cost reduction initiatives in its automotive experience, building efficiency and power solutions businesses and includes workforce reductions and plant consolidations. The company expects to substantially complete the initiatives by early 2010.

The automotive-related restructuring is in response to the fundamentals of the European and North American automotive markets. The actions target reductions in the company's cost base by decreasing excess manufacturing capacity due to lower industry production and the continued movement of vehicle production to low-cost countries, especially in Europe. The restructuring actions in Building Efficiency are primarily in Europe where the company is centralizing certain functions and rebalancing its resources to target the geographic markets with the greatest potential growth. Power Solutions actions are focused on optimizing its regional manufacturing capacity.

Johnson Controls said it expects the restructuring plan will improve its long-term growth prospects in its highly competitive global markets.

The company's fourth quarter ends on September 30, 2008. Johnson Controls will report earnings on October 23, 2008.

The company will hold an analyst conference call to discuss the restructuring plan on Wednesday, September 3, 2008, from 8:30 to 9:00 a.m. Eastern time. A live webcast of the call, as well as a recorded archive, can be accessed at http://www.johnsoncontrols.com/.

Johnson Controls (NYSE:JCI) is the global leader that brings ingenuity to the places where people live, work and travel. By integrating technologies, products and services, we create smart environments that redefine the relationships between people and their surroundings. Our team of 140,000 employees creates a more comfortable, safe and sustainable world through our products and services for more than 200 million vehicles, 12 million homes and one million commercial buildings. Our commitment to sustainability drives our environmental stewardship, good corporate citizenship in our workplaces and communities, and the products and services we provide to customers. For additional information, please visit http://www.johnsoncontrols.com/.