Lear headquarters building | |
Formerly | American Metal Products |
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Company type | Public |
Traded as |
|
Industry | Manufacturing |
Founded | Detroit, Michigan (1917 (1917)) |
Headquarters | Southfield, Michigan, United States |
Number of locations | 257 locations in 39 countries (2017) |
Area served | International |
Key people | Ray Scott (President, CEO, and Director) Terry Larkin (Executive Vice President, Business Development and General Counsel) |
Services | Supplier of automotive seating and electrical |
Revenue | US$20.467 billion (2017) |
Operating income | US$1.608 billion (2017) |
Net income | US$1.313 billion (2017) |
Total assets | US$11.946 billion (2017) |
Total equity | US$4.293 billion (2017) |
Number of employees | 174,600 (2020) |
Divisions | Seating and Electrical |
Website | lear |
Lear Corporation is an American company that manufactures automotive seating and automotive electrical systems. In 2019, it ranked #147 and in 2018, it ranked #148 on the Fortune 500 list.
Early stages
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 (OEM) auto companies.
Inheritance of United Technologies Automotive
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.
First Large Corporation to achieve ISO/TS 16949:1999 world wide in 280 global facilities, all of which was managed by Bill Cooper, Lear Corporation Global Quality Systems Senior Quality Manager.
Next Acquiring
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.
Spinoff Assembling and Interior Systems Division
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.
Another extension and purchasing of the Interior System Department
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.
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.
Close to Bankruptcy
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.
Simoncini becomes CEO
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.
PACE Award
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."
Takeover of Guilford Mills
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.
Acquisition of Eagle Ottawa LLC
In August 2014, it was announced that Lear Corp would acquire automotive leather supplier Eagle Ottawa LLC for a fee of $850 million.
Occasions 2015
In May 2015 the company announced that it would open a new automotive plant in Gostivar, Republic of North Macedonia, in the summer of 2015. This was to be Lear's first facility in North Macedonia.
In August 2015 the company acquired the intellectual property and engineering team of Autonet Mobile. Autonet Mobile was a developer of connected car solutions using cellular, WiFi, Bluetooth and cloud connected solutions.
In November 2015 the company acquired Arada Systems. Arada Systems was a technology company specializing in vehicle-to-vehicle and vehicle-to-infrastructure (V2V and V2I, together V2X) communication systems. They developed hardware and software for V2X utilizing their expertise in 5.9 GHz dedicated short range communication (DSRC) and other wired and wireless technologies such as CAN and GPS.
Agreement set for takeover Grupo Antolin
In February 2017 it was announced that Lear Corp signed a definitive agreement to acquire Grupo Antolin's automotive seating business. The transaction was valued at €286 million on a cash and debt free basis. Lear Corp funded the transaction with cash on hand.
Formula 1 Engagement
Lear held a backer for the Jaguar Racing Team in the 2001 Formula One World Championship and also now in the Formula E Competition.
Acquisition of InTouch Automation
In November 2022, it was announced Lear had acquired the Novi-based supplier of Industry 4.0 technologies and automated testing equipment used in the production of automotive seats, InTouch Automation.
References
- ^ "Lear Corporation 2017 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. January 2018.
- "Lear | 2021 Fortune 500".
- "Lear | 2021 Fortune 500".
- "Lear | 2021 Fortune 500".
- "The History of Lear Corporation". Retrieved July 30, 2018.
- "Lear To Buy Parts Unit Of United Technologies". New York Times. March 17, 1999. Retrieved March 20, 2014.
- "Lear Corporation Acquires United Technologies Automotive" (Press release). Lear Corporation. May 4, 1999. Retrieved March 20, 2014.
- Gelsi, Steve (April 5, 2004). "Lear buying buying Grote & Hartmann for $220 mln". MarketWatch. Retrieved March 20, 2014.
- "Lear Corp. Completes Acquisition of Grote & Hartmann" (Press release). Lear Corporation. July 6, 2004. Retrieved March 20, 2014.
- "Lear Completes North American Interior Business Joint Venture with WL Ross and Franklin Mutual" (Press release). Lear Corporation. April 7, 2007. Archived from the original on October 30, 2007.
- "Lear Corporation Chapter 11 Petition" (PDF). PacerMonitor. Retrieved June 6, 2016.
- "Car parts maker Lear emerges from bankruptcy". Reuters. November 9, 2009. Retrieved March 20, 2014.
- "Lear CEO Rossiter steps down; finance chief Simoncini tapped as successor". Autonews.com. August 10, 2011. Retrieved March 20, 2014.
- "Automotive News PACE Awards". Autonews.com. 2012. Archived from the original on April 13, 2015. Retrieved March 20, 2014.
- Yahoo Finance
- "Lear Corp to buy leather supplier Eagle Ottawa for $850 million" (Press release). Reuters. August 28, 2014.
- "Lear Corp. (LEA) to Open Automotive Plant in Macedonia" (Press release). Nasdaq. May 19, 2015.
- "Lear Acquires Intellectual Property from Autonet Mobile, a Leading Developer of Communication Software and Devices for Automotive Applications". PR Newswire (Press release). August 17, 2015.
- "Lear Acquires Arada Systems, a Leading Automotive Technology Company that Specializes in Vehicle-to-Vehicle and Vehicle-to-Infrastructure Communications". PR Newswire (Press release). November 30, 2015.
- "Lear Corp. (LEA) To Acquire Gruo Antolin's Automotive Seating Business, Deal For €286 Million In Cash". StreetInsider.com. Retrieved February 6, 2017.
- "Lear acquires Industry 4.0 specialist InTouch Automation". Automotive World. November 18, 2022. Retrieved November 19, 2022.
- Auto parts suppliers of the United States
- Manufacturing companies based in Michigan
- Companies based in Southfield, Michigan
- Companies that filed for Chapter 11 bankruptcy in 2009
- Companies listed on the New York Stock Exchange
- Automotive companies established in 1917
- 1917 establishments in Michigan
- Companies in the S&P 400