Lear Corporation headquartered in Southfield, Michigan, USA, is a Fortune
500 company, engaged in the business of manufacturing and distribution of
automotive seating and electrical distribution systems. As of 2014, the
company had 221 manufacturing facilities in 36 countries around the globe,
staffed by 113,400 employees. They recorded an aggregate global sales of
US$ 16.2 billion in 2013. Lear has two major divisions: the seating business
segment and the electrical business segment.
History Lear Corporation was launched as
American Metal Products in 1917 in Detroit, Michigan. At the time of its
founding it was engaged in the manufacture of tubular, welded and
stamped assemblies for the aircraft and automobile industries.
Lear grew during the 1980s and 1990s through a series of acquisitions. The
company sought to become a supplier of complete interior automotive systems,
that is, a supplier of seating, electrical, flooring, interior trim,
instrument panels, etc., to original equipment manufacturing auto companies.
On March 16, 1999, Lear announced it would acquire United Technologies
Automotive, a subsidiary of United Technologies Corporation that produced
dashboards, electrical distribution systems, motors and air-flow parts,
interior door panels and switches, for $2.3 billion. Lear announced on May 4,
1999, that it had completed the acquisition.
On April 5, 2004, Lear announced it would pay $220 million for Wuppertal,
Germany-based Grote & Hartmann, a maker of electrical components. On July 6,
2004, Lear announced it had completed the transaction.
As of late 2005, most OEM auto companies had indicated that they no longer wanted
to purchase total interiors from any one company. As this was Lear's primary
purpose in assembling those three divisions, and the Interior Systems
Division was not profitable, the company began seeking to get rid of this
division. In early 2007, Lear Corporation
completed the transfer of substantially all of its former North American
Interior Systems Division to International Automotive Components
Group, a joint venture of Lear, WL Ross & Co., and Franklin Mutual Advisers. The
deal involved 26 manufacturing plants and two Chinese joint ventures. Lear
also contributed $27 million in cash for a 25 percent interest in IAC and
warrants for an additional 7 percent. Also in 2007, Lear's board of directors
agreed to a $2.3 billion takeover offer from American Real Estate Partners, an
affiliate of financier Carl Icahn, subject to shareholder approval. Lear
has said it will continue to talk to other interested parties, however, Icahn
would receive a $100 million fee should another offer be accepted. The deal was
later voted down by shareholders. On July 2, 2009 Bloomberg News reported
that Lear Corp. planned to file for Chapter 11 bankruptcy after reaching an
agreement with representatives of secured lenders and bondholders. On
November 9, 2009, Lear announced it had emerged from bankruptcy.
On August 10, 2011, Lear announced that senior vice president and chief
financial officer Matt Simoncini had been elected chief executive officer and
president, effective September 1, 2011. In 2012, Automotive News awarded Lear a
Premier Automotive Suppliers' Contribution to Excellence Award for
innovation, technological advancement and business performance for its Solid
State Smart Junction Box, noting Lear's "S3JB junction box has 1) integrated
solid state fuse technology to eliminate relays, 2) created a new package that no
longer has to be accessible from the driver compartment which decreases
nuisance calls and lowers electrical device warranty returns, 3) created and
installed a smart software logic with detailed diagnostics to permit a 'fail
safe operation,' and 4) designed a single state board design with patented
thermal aspects that permits multiple system and device connections and
various configurations to ease manufacturing processes."
Lear acquired automotive and specialty fabrics company Guilford Mills for $257
million in May 2012. In addition to automotive fabric applications, Guilford
produces fabrics for markets including water filtration, window covering,
performance apparel, medical and other industrial applications.
In August 2014, it was announced that Lear Corp would acquire automotive
leather supplier Eagle Ottawa LLC for a fee of $850 million.
In May 2015 the company announced that it will open a new automotive plant in
Gostivar, Macedonia in the summer of 2015. This is Lear's first facility in
Macedonia. External links
Corporate website References