Lear Corporation: A Proud History In The Asian Automotive Industry
21 October 1999
Lear Corporation: A Proud History In The Asian Automotive Industry
TOKYO, Oct. 20 -- Lear Corporation began
operations in 1917 as American Metal Products producing metal seat frames, and
today is a global leader in providing automotive systems to major automotive
manufacturers in Japan, Asia Pacific and around the world.
Lear's heritage includes a long history serving Asia's automakers and
providing superior products to meet the needs of the Asian market. Lear is
the global leader in automotive seat systems, as well as one of the world's
top three suppliers of headliners, electronics, door panels, and flooring and
acoustic systems.
In the past five years, Lear's business outside of Europe and North
America has grown dramatically. For 1994, Lear reported sales of $196.3
million in rest-of-world (ROW) markets. Lear's proforma 1998 ROW sales (which
include Lear's latest acquisitions) were $900 million. During the past five
years, the company's ROW sales as a percentage of its total global sales
increased from six percent in 1994 to nine percent in 1998.
Lear conducts business with most major Asia Pacific automotive
manufacturers including Honda, Mitsubishi, Nissan and Toyota in North America
and Europe; Isuzu, Mazda, Subaru and Suzuki in North America; Chang'an
Automotive, Daewoo, GM-Holden, Honda, Hyundai, Isuzu, Mahindra & Mahindra,
Mitsubishi, and Mazda in other markets. Lear also has business with PSA, Ford
and General Motors through their joint ventures in the Asia Pacific region.
Lear has a growing presence in the Japanese market. The company has
facilities with engineering and design capability in Japan -- located in
Tokyo, Hiroshima and Nagoya. Lear currently ships electronics and switches to
the domestic Japanese market from its operations in North America and the
Philippines.
Lear also has a significant presence in the Asia Pacific region. The
company's Asia Pacific Operations, headquartered in Singapore, has facilities
in Australia, China, India, Philippines and Thailand.
Since 1990, Lear has been producing high quality leather seat trim covers
in Thailand for its seating operations in Europe and North America. In 1995,
Lear opened facilities in Australia and India to provide just-in-time seating
to General Motors. In 1998, the company won a contract to design, engineer
and manufacture a total interior for Mahindra & Mahindra in India. Lear also
opened facilities to provide just-in-time seating to Mahindra on its current
vehicle platforms.
Earlier this year, Lear announced that the company has signed a letter of
intent to purchase a portion of Hyundai Motor Corporation's seating business.
When finalized, the acquisition will provide the company's Asia Pacific
Operations a strong base in Korea.
In May 1999, Lear advanced its global business with the acquisition of
United Technologies Automotive (UTA). Of special significance was the
addition of world-class electronic and electrical distribution systems
capabilities. The acquisition also expanded Lear's worldwide presence into
the Philippines, adding engineering and manufacturing in Cebu. The
engineering center supports electronics and interior products. The
manufacturing facilities produce wire harnesses for the domestic, North
American and Japanese markets.
In addition to its wholly owned operations, the growth of Lear's Asian
automotive business has been enhanced by a number of important partnerships.
In 1987, Lear and NHK Spring Company Ltd. of Yokohama, Japan formed
General Seating, a joint venture company that capitalized on NHK's
manufacturing system and Lear's technology for seat systems and other interior
components. General Seating has just-in-time seating plants in Frankfort,
Indiana (USA) and in Woodstock, Ontario (Canada). Its customers during the
past 12 years included CAMI Automotive (a General Motors-Suzuki joint
venture), Honda and SIA (a Subaru-Isuzu joint venture).
Another joint venture with NHK, General Seating (Thailand) Co. Ltd., was
established in late 1996. This venture provides just-in-time seating to
Ford/Mazda and Volvo; and will expand to include BMW next year.
Lear and NHK recently established a research and development operation
based in Dearborn, Michigan (USA), along with Lear's Transnational Division,
which oversees Lear's interest in General Seating. Its close proximity to the
Lear Corporation World Headquarters and Technology Center complex provides
access to Lear's total systems capabilities including state-of-the-industry
design and validation operations.
In 1996, Lear made its first expansion into the rapidly emerging Chinese
market, forming a joint venture with Jiangling Motors Co., Ltd. of Nanchang,
China. The new company, Lear-Jiangling Interior Systems Co., Ltd., initially
supplied seats and interior trim for Isuzu trucks and Ford Transit vans
produced at the Jiangling Motors plant.
In 1998, Lear increased its presence in China announcing joint ventures
with Chang'an Automobile to provide full interior components for Chang'an
Automotive in Chongqing; Shanghai Car Carpet to produce automotive carpets for
Shanghai General Motors in Shanghai; and Shanghai Vehicle Awning to produce
interior trim components for Shanghai General Motors.
Also through the UTA acquisition, Lear assumed an ownership interest in a
joint venture with DCAC in Wuhan, China. The joint venture produces wire
harnesses for PSA and next year will begin to export wire harnesses to Citroen
in France.
In 1998, Lear announced a joint venture with Hanil to produce full
interior systems for Hyundai's manufacturing plant in India.
Lear also assumed UTA's majority interest in a joint venture with
Furakawa of Tokyo, Japan, now doing business as Lear-Furakawa. The joint
venture is based in El Paso, Texas (USA) and produces wire harnesses for
Honda, Isuzu, Mazda and Subaru for the North American market.
When Lear acquired Masland Industries in 1996, it also assumed Masland's
ownership interest in AMTEX, which has operations in Lebanon, Ohio (USA) and
Manteca, California (USA). This joint venture, formed by Masland and Hayashi
Telempu of Nagoya, Japan in 1983, produces flooring and acoustic systems and
other interior products for Isuzu, Mazda, Mitsubishi, NUMMI (a GM-Toyota
venture), Subaru and Toyota for the North American automotive market.
Lear Corporation , a Fortune 200 company headquartered in
Southfield, Michigan (USA), is one of the world's largest automotive
suppliers, with 1998 proforma sales of more than $12 billion. The company's
world-class products are designed, engineered and manufactured by more than
100,000 employees in over 300 facilities located in 33 countries. Information
about Lear and its products is available on the Internet at
http://www.lear.com