Motorola and Lear Forming Joint Venture
14 February 2000
Motorola and Lear Forming Joint Venture to Design Integrated Interior Systems For Ford
SOUTHFIELD, Mich., and NORTHBROOK, Ill., Feb. 11 -- Lear
Corporation , headquartered in Southfield, Mich., and the
Integrated Electronic Systems Sector (IESS) of Motorola , based in
Northbrook, Ill., today announced the signing of a memorandum of understanding
to form a joint venture to design integrated interior systems for Ford Motor
Company that incorporate a wide range of advanced electronics from Motorola.
The 50-50 partnership, which is focused exclusively on integrated interior
systems for Ford, will be based in Dearborn, Mich., and will integrate
Motorola's automotive electrical, electronic and telematics systems products
with Lear's innovative integration capabilities. Other details regarding the
joint venture are not being released, pending the signing of a definitive
agreement.
The two companies bring distinct, world-class capabilities to the mix for
Ford. Two business units of Motorola IESS will be key contributors to the new
joint venture company: the Automotive and Industrial Electronics Group (AIEG),
a leader in embedded electronics; and the Telematics Communications Group
(TCG), an industry leader in wireless communications. Lear is a leader in the
development and production of automotive interior systems and
electronic/electrical distribution systems. Under the terms of the agreement
both companies will continue to be free to respond independently to other
requirements at Ford, as well as source business independently from other
OEMs and tier ones in the industry.
"This is an exciting opportunity for us to leverage the strengths and
resources of both companies to create an expanded portfolio of value-added
products and cutting-edge technologies that will enhance Lear's leadership
position in interior systems integration," said Lear Corporation chairman and
CEO Kenneth L. Way. "The combined creativity and capabilities of our two
companies will maximize current investments and bring innovative solutions to
the automotive market that will establish new benchmarks for interior
integration."
Lear will be the tier one supplier to Ford for integrated interior systems
that incorporate design features developed under the joint venture. This
collaborative approach is aimed at developing innovative concepts that result
from the integration of electronic and interior components at the earliest
stages of design. Additional benefits include reducing costs and vehicle
weight, and fostering quality improvement. Motorola's capabilities include
embedded electronics, telematics products and consumer electronic products
such as cellular phones, pagers and TalkAbout(TM) two-way radios.
"We're excited about working with world-class suppliers like Lear on key
interior systems for new Ford vehicles," said Joe Guglielmi, executive vice
president and president of Motorola IESS. "This is part of our strategic
effort to work with a number of tier one suppliers on innovative systems for
our OEM customers. We see this effort, which is aimed squarely at better
satisfying system requirements at our joint customer Ford, as a win/win for
everyone involved."
Lear and Motorola are currently working together on advanced modular
designs. Those designs will be showcased at the Lear exhibit during the
Society of Automotive Engineers (SAE) 2000 World Congress and Exhibition,
March 6-9 at Cobo Center in Detroit.
About Lear Corporation
Lear Corporation, a Fortune 200 company headquartered in Southfield,
Michigan, USA, is the one of the world's largest automotive suppliers, with
annual sales of more than $12 billion. The company's world-class products are
designed, engineered and manufactured by more than 120,000 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 .
About Motorola IESS
Motorola's Integrated Electronic Systems Sector (IESS) is a leading
provider of advanced electronic products and systems for customers integrating
electronics into their products. Motorola IESS solutions provide the Digital
DNA(TM) that makes electronic systems smart, powerful and easy to use.
Motorola IESS designs and manufactures electronic solutions for automotive,
communications, imaging, manufacturing systems, computer, and industrial
markets. Motorola is a global leader in providing integrated communications
solutions and embedded electronic solutions. Sales in 1999 were $30.9 billion.
More information can be found online at http://www.motorola.com .