Lear And Donnelly Form Global Joint Venture for Overhead Systems
4 September 1997
Lear And Donnelly Form Global Joint Venture for Overhead Systems
SOUTHFIELD, MI, September 4, 1997 -- Lear Corporation , based
in Southfield, Michigan and Donnelly Corporation , based in
Holland, Michigan, today announced that the two companies have agreed to form
a joint venture for the design, development, marketing and production of
overhead systems for the global automotive market. The alliance is expected
to enhance the competitive market position of both companies in the global
market for automotive overhead systems.
"The Lear-Donnelly joint venture combines the greatest strengths of each
organization, creating a global leader in the automotive overhead market,"
said Kenneth L. Way, Lear Corporation Chairman and CEO. "By combining
Donnelly's expertise in electronics, lighting and overhead sub-systems with
the global resources of Lear, we are able to provide our customers with
overhead systems that integrate the latest technologies, delivered on a just-
in-time basis, anywhere in the world. This alliance significantly enhances
both Lear and Donnelly's position in the estimated $5 billion global
automotive system market."
The joint venture will be called Lear-Donnelly Overhead Systems, L.L.C.,
and will be a 50/50 partnership between the two parent companies. Both will
work exclusively through the strategic alliance to capture a leading share of
the global automotive overhead systems market. In addition to complete
overhead systems, the joint venture will market headliners, overhead consoles
and lighting components, vehicle electrification interfaces, electronic
components and assist handles.
Under the terms of the agreement, Lear and Donnelly will each contribute
certain technologies and assets for the creation of the venture. Included
will be Lear operations in Marlette, Michigan and Prestice, in the Czech
Republic. Donnelly will include its interior lighting and trim facility in
Holland, Michigan, and its Irish lighting and trim operations, based just
outside of Dublin.
"This is the right move, with the right partner, at the right time," said
Dwane Baumgardner, Donnelly Chairman and CEO. "Lear is the global leader in
automotive interior systems and we are tremendously excited about working
together with them to set the new world standard in overhead systems. The
preliminary response from our OEM customers has been very positive, and we
believe that Lear-Donnelly Overhead Systems will quickly emerge as one of the
benchmarks for Tier I alliances in the automotive industry."
The consummation of the joint venture is contingent upon regulatory
approval, including the European Commission.
Donnelly Corporation is an international automotive supplier, dedicated to
serving customers around the globe with high-quality fabricated, molded and
coated glass products. The company has revenues of nearly $700 million and
employs approximately 5,000 people in 28 locations in the U.S., Mexico,
Europe and Asia. Donnelly is also recognized as a leader in the application
of participative management, and was named as one of the "Top Ten" in the
book, The 100 Best Companies To Work For In America. Information about
Donnelly and its products is available on the Internet at
http://www.donnelly.com.
A Fortune 250 Company, Lear Corporation is one of the world's largest
independent automotive suppliers, with 1996 sales of over $6.2 billion. The
company's world class products are manufactured by more than 47,000 employees
in over 150 facilities located in 23 countries. Information about Lear and
its products is available on the Internet at http://www.lear.com.
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Actual results may
differ materially from the anticipated results as a result of certain risks
and uncertainties, including but not limited to general economic conditions in
the markets in which Lear-Donnelly operates, fluctuations in the production of
vehicles for which Lear-Donnelly is a supplier, labor disputes involving Lear-
Donnelly or its significant customers, risks associated with conducting
business in foreign countries and other risks detailed from time to time in
the Securities and Exchange Commission filings of Lear Corporation and
Donnelly Corporation.
SOURCE Lear Corporation