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Lear Corporation: Technology, Innovations Demonstrate Industry Leadership

24 May 2000

Lear Corporation: Technology, Innovations Demonstrate Industry Leadership
    YOKOHAMA, Japan, May 24 Lear Corporation is
the creative force behind thousands of automotive innovations that have earned
the company numerous awards and expanded Lear's backlog of new business to
more than $3 billion.  By designing from the inside out, Lear can ensure that
all components -- from overhead storage systems to self-aligning seat head
restraints and sophisticated cabin communication systems -- work together.
The resulting harmonious design is a hallmark of Lear innovation and
technology.
    Lear is showcasing some of its latest technology innovations at the
company's exhibit at the 2000 Automotive Engineering Exhibition, sponsored by
the Society of Automotive Engineers of Japan.  These innovations include both
products and processes, tapping the creative talents of Lear's worldwide
employees and the tools that help bring those creations to fruition.
    The focus of the Lear exhibit is modularity and the benefits that modules
offer to automakers and consumers.  Lear also is unveiling an impressive range
of its new Intertronics(TM) products, Lear's products and technologies for the
global automotive market such as smart junction boxes, advanced electronic
products and mechatronic switches, as well as remote keyless entry systems and
full electronic and electrical distribution systems.
    OASys(TM) Overhead Audio System -- Lear's OASys overhead audio system is
revolutionizing automotive audio.  OASys uses a network of sound zones in
place of large, heavy traditional cone and coil speakers currently positioned
in door and instrument panels.  This technology transforms the entire
headliner into a speaker with excellent ambiance and enveloping sound
qualities, logically focusing the sound at occupants' ears rather than their
knees.  OASys has multi-channel capability and adaptability, and uses typical
audio signal processing.  Ducts for heating, air conditioning and ventilation
also can be incorporated.  OASys provides automotive manufacturers an
opportunity to reclaim valuable packaging space in the door and instrument
panels, eliminate the noise paths into the vehicle interior and achieve total
vehicle weight savings.  Lear can deliver OASys fully assembled and pretested,
resulting in a reduction in vehicle complexity as well as warranty issues.
    Integrated Seat Adjuster Module (ISAM) -- This mechatronic product
combines the consumer interface control and the multiplexed electronic control
for seat adjustment, power lumbar support, memory function and heated seat
into one package.  ISAM combines several functions into one product to save
space and cost, has the design flexibility to include additional features and
styles, and reduces time and complexity of assembly into the seat.
    Two-Tone, Single-Step Injection Molding -- This low-pressure Lear process
innovation has the capability to produce a two-tone door in a single step.  It
provides excellent interfacial bonding without the use of adhesive and can
accommodate post-formable flanges and trim edges.  The process has the
flexibility to produce a door trim panel with a single cover, a split cover
combining a soft upper cover with hard lower trim or no covering material at
all.  Integral molded core features include cages, locators and retainers.
    FabricFoam(TM) Seat Trim -- Lear is continually exploring materials
innovations in seating systems.  Seating is the third largest cost in the
production of a vehicle and the largest portion of the seat cost is the
seating materials.  Lear's proprietary FabricFoam seat trim eliminates the
need for seat covers, which reduces materials, labor and lamination cost.  The
one-step, low-cost manufacturing process for FabricFoam uses polyurethane foam
and durable polyurethane skin to produce a flexible surface finish with
dynamic colors, texture and gloss that also meets automakers' materials
specifications and comfort requirements.  It can be easily recycled and is
both water resistant and washable.
    Dual Voltage Smart Power Junction Box -- Lear's Dual Voltage Smart
Junction Box is a multifunctional and centralized unit that combines the
signal and power for the upcoming dual voltage architecture.  The increasing
consumer demand for new power functions is driving the need for efficient,
high voltage distribution systems in vehicles.  The dual voltage architecture
maintains the current 12-volt power needed for loads such as the vehicle's
incandescent lamps and small power motors and actuators, while deploying the
42-volt power bus for the new, high power demanding loads such as
electro-magnetic valves and electrically heated catalytic converters.  The
introduction of the two voltage systems increases the efficiency of the whole
electronic and electronic distribution system, and optimizes size, weight and
cost.  The Dual Voltage Smart Junction Box also provides new technical
solutions using higher voltages, such as the use of semiconductors optimized
for 42 volts that replace conventional electromechanical relays and the
integration of the DC/DC converted into the Smart Junction Box.
    Integrated Airbag Canister -- This Lear innovation integrates the airbag
canister with the instrument panel retainer, providing improved fit and finish
of the canister and airbag to the instrument panel.  The design eliminates the
canister end caps, contributing to the reduction in parts, cost and weight.
The integrated canister also provides enhanced structural support to the
instrument panel.
    Integrated Head Impact Countermeasures -- Lear's Pro-tec(TM) Advanced
Restraints line of safety products include materials innovations in head
impact countermeasures that provide enhanced safety to vehicle occupants.
Among the materials on display is an egg-crate-like plastic that provides
improved energy absorption.
    Sono-tec(TM) AT Dash Insulator and Floor Underpad -- Sono-tec AT Dash
Insulator and Floor Underpad is part of Lear's Sono-tec Acoustic Absorbers,
Lear's line of acoustic products.  This very lightweight, multi-layer dash
insulator and floor underpad was developed and optimized through Lear's
proprietary acoustic modeling capabilities.  It provides optimum sound
abatement performance by using both absorptive and barrier technology.  In
addition to being manufactured from recyclable materials, it offers a weight
savings of up to 60 percent compared to traditional designs.
    Integrated Door Controls -- This family of mechatronic products
consolidates the controls for window lift, door lock, power mirror, heated
seat and electronic control modules into a single, integrated package that
operates either direct or via multiplexing to interface with vehicle systems
outside the doors.  Lear's integrated door controls lower system cost by
reducing wires and assembly of different controls and the modular design
allows adaptability to vehicle requirements with minimal changes.
    Pro-tec(TM) Self-Aligning Head Restraint System -- Lear's exclusive
Pro-tec Self-Aligning Head Restraint System (SAHR) significantly reduces the
occupant's risk of neck injury during a low-speed rear impact.  SAHR is part
of Pro-tec Occupant Protection Systems, Lear's line of innovated safety
products.  It uses a balancing system that allows the acceleration and
velocity between the head and the upper torso to be as low as possible.
During the early stage of the rear impact, the force of the impact presses the
occupant against the seat back, then the head restraint moves up and forward
to support the head and minimize the potential for whiplash.  SAHR reduces the
risk of injury by 80 percent compared to standard seat frames.
    Custom Key Fobs -- This new generation of remote keyless entry key fob
designs uses decorative molding technology to offer a wide variety of options
in fob design patterns or colors including textures, logos, text, and
translucent and glow-in-the-dark colors.  The custom key fobs provide unique
styling without changing mold or injection material, offer the proven styling
success found in cell phones and pagers to key fobs, and use technology that
is adaptable to existing molds with only minimal change.
    Electrically Integrated Door Trim System -- This Lear innovation
integrates the wire harness and electrical components, such as door switches,
into the door trim panel, as well as mounting the sound system speaker on the
panel.  By incorporating all these items into the door trim panel and then
installing the electrically integrated door trim system on the vehicle door
along with other components reduces complexity at the vehicle assembly plant
and provides improved ergonomics during assembly.
    People-Vehicle-Interface(TM) Methodology (PVI Method(TM)) -- Lear's
exclusive People-Vehicle-Interface Methodology -- or PVI Method for short --
is the innovation development discipline Lear employs to turn a market
opportunity into stylish and functional products that consumers want and need
in their vehicles.
    Lear's six pillars of PVI begin with Consumer Research to define consumer
preferences based on extensive testing, focus group studies and physical
measurements.  The second pillar, Industrial Design, interprets consumer data
to conceptualize and create unique solutions to meet the demands of tomorrow's
automotive interior components and systems.  That is followed by Engineering,
where Lear engineers develop new products that meet the needs of both Lear's
customers (automakers) and consumers, focusing on safety, modularity, low
mass, comfort and convenience.
    The fourth pillar is Technical Analysis in which specialists provide
analytical and developmental expertise to assess the performance, longevity
and function of each component or system.
    The PVI Method's final two pillars are Manufacturing Process Development
and Validation.  The former focuses on the evolving manufacturing processes to
produce superior components as well as to bring products to market faster.
Increased recyclability, while reducing cycle time and costs, also is
important.  Validation is conducted at Lear's recently expanded,
state-of-the-art testing facility that is part of the Lear Corporation World
Headquarters and Technology Center in Southfield, Michigan (USA).  There,
products are tested and certified to meet the government specifications and
the individualized needs and requirements of Lear's customers.


                              Lear Corporation:
               A Proud History In The Asian Automotive Industry

    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 1999 ROW sales were
$811.4 million -- a compounded growth rate of 42.6 percent.
    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 and Mahindra in India.  Lear
also opened facilities to provide just-in-time seating to Mahindra on its
current vehicle platforms.
    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 other automotive manufacturers.
    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 150 company headquartered in Southfield,
Michigan (USA), is one of the world's largest automotive suppliers, with 1999
sales of $12.4 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 .