Lear Corporation

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Lear Corporation
Formerly called American Metal Products
Type Public Fortune 500
Traded as [LEA] on the NYSE
Industry Manufacturing
Founded Detroit, Michigan (1917 (1917))
Headquarters Southfield, Michigan, USA
Number of locations 221 locations in 36 countries
Area served International
Key people Matthew J. Simoncini, President, Chief Executive Officer and Director; Terry Larkin, Executive Vice President, Business Development and General Counsel
Services Supplier of automotive seating and electrical
Revenue $16.2 billion in 2013
Employees 122,000
Divisions Seating and Electrical
Website www.lear.com/en/
Lear headquarters building

Lear Corporation (NYSELEA), 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 across the globe, manned by 113,400 employees. They recorded an aggregate global sales of US$ 16.2 billion in 2013.[1] Lear is composed of two major divisions: the seating business segment and the electrical business segment.

History[edit]

Lear Corporation was launched originally as American Metal Products in 1917 in Detroit, Michigan. At the time of their founding they were engaged in the manufacture of tubular, welded and stamped assemblies for the aircraft and automobile industries.[2]

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 (OEM) 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.[3] Lear announced on May 4, 1999, that it had completed the acquisition.[4]

On April 5, 2004, Lear announced it would pay $220 million for Wuppertal, Germany-based Grote & Hartmann, a maker of electrical components.[5] On July 6, 2004, Lear announced it had completed the transaction.[6]

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.[citation needed][needs update]

In early 2007, Lear Corporation completed the transfer of substantially all of its former North American Interior Systems Division to International Automotive Components Group (IAC), 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.[7]

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.[citation needed]

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.[8]

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.[9]

In 2012, Automotive News awarded Lear a Premier Automotive Suppliers' Contribution to Excellence (PACE) Award for innovation, technological advancement and business performance for its Solid State Smart Junction Box (S3JB), 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."[10]

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.[11]

In August 2014, it was announced that Lear Corp would acquire automotive leather supplier Eagle Ottawa LLC for a fee of $850 million.[12]

Environmental record[edit]

According to Randall Carron, president of international relations for Lear Corporation, Lear is not only committed to its employees but also to protecting the environment, in which they are held responsible, and realizes the importance of it.[13] The Sidney, Ohio plant is the first Lear Corporation plant worldwide to be certified and recognized as meeting the environmental management standard. Lear is dedicated in addressing immediate short and long-term problems of the environment and the programs and facilities that affect it. Lear is also especially aware of the job their employees are doing, and continues to look forward in protecting the environment for future generations. In order to improve the environment, the plants must identify the products and services that may have a major impact on the environment. Carpet scraps and solid waste have been proven to have a negative aspect in improving the environment. The Lear Corporation is committed to improving the work environment.[14]

External links[edit]

References[edit]

  1. ^ "Lear Corp Form 8-K Current Report". United States Securities and Exchange Commission. January 31, 2014. 
  2. ^ "The History of Lear Corporation". Retrieved 8 May 2014. 
  3. ^ "Lear To Buy Parts Unit Of United Technologies". New York Times. March 17, 1999. Retrieved March 20, 2014. 
  4. ^ "Lear Corporation Acquires United Technologies Automotive" (Press release). Lear Corporation. May 4, 1999. Retrieved March 20, 2014. 
  5. ^ Gelsi, Steve (April 5, 2004). "Lear buying buying Grote & Hartmann for $220 mln". MarketWatch. Retrieved March 20, 2014. 
  6. ^ "Lear Corp. Completes Acquisition of Grote & Hartmann" (Press release). Lear Corporation. July 6, 2004. Retrieved March 20, 2014. 
  7. ^ "Lear Completes North American Interior Business Joint Venture with WL Ross and Franklin Mutual" (Press release). Lear Corporation. April 7, 2007. 
  8. ^ "Car parts maker Lear emerges from bankruptcy". Reuters. November 9, 2009. Retrieved March 20, 2014. 
  9. ^ "Lear CEO Rossiter steps down; finance chief Simoncini tapped as successor". Autonews.com. August 10, 2011. Retrieved March 20, 2014. 
  10. ^ "Automotive News PACE Awards". Autonews.com. 2012. Retrieved March 20, 2014. 
  11. ^ Yahoo Finance[dead link]
  12. ^ "Lear Corp to buy leather supplier Eagle Ottawa for $850 million" (Press release). Reuters. 28 August 2014. 
  13. ^ CSRwire[dead link]
  14. ^ "Lear Corp. proves committed to lean manufacturing system Nelson Publishing". Findarticles.com. [dead link]