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European Business Wins Play Major Role In Lear's Record Business Backlog

27 September 2000

European Business Wins Play Major Role In Lear Corporation's Record Business Backlog

    PARIS, Sept. 27 Lear Corporation, the world's
fifth-largest automotive supplier and the eighth-largest supplier in Europe,
continues to expand its presence in the region with recent new business awards
valued at several hundred million dollars from various European auto makers.
    As a result, Lear will build a new facility in Madrid, Spain, next year to
produce seats for two current PSA Peugeot Citroen vehicles, as well as other
new PSA models in coming years.  Lear currently supplies seats to PSA from its
plant in Cergy-Pontoise, France.  A third European facility in Aulnay, France,
will also be established to support PSA seat production.
    "We are proud of the confidence PSA has shown in granting new business to
Lear since being awarded our first-ever contract with the French auto maker
last year," said Kenneth L. Way, Chairman and Chief Executive Officer of Lear
Corporation.  "We see a tremendous opportunity to continue our European sales
growth based on our track record as the world's foremost seat manufacturer and
the projected growth for electronics content within the vehicle's interior."
    Lear has made significant inroads in Europe, boosting sales in the region
to $3.9 billion in 1999, or nearly seven times Lear's 1994 sales of $572.5
million.  Last year, European sales accounted for nearly 32 percent of Lear's
total worldwide sales, compared with only 18 percent in 1994.  New business
wins in Europe represent nearly one-half of Lear's previously announced
business backlog of $3.3 billion.
    Lear has more than 36,000 employees in Europe at operations in Austria,
Belgium, Czech Republic, England, France, Germany, Hungary, Ireland, Italy,
the Netherlands, Poland, Portugal, Russia, Spain, Sweden, Turkey and Tunisia.
    Contracts with General Motors Corp., DaimlerChrysler AG, Porsche AG and
Volkswagen AG for hard trim, door and instrument panels will create new
production capacity in Zwiesel, Germany, Offranville, France and Slovakia, as
well as providing additional business to existing Lear facilities in
Plattling, Germany and Prestice, Czech Republic.
    These agreements will allow Lear to capitalize on existing strengths in
manufacturing to make similar products for different customers in a single
facility, resulting in lower costs.
    A recent decision to locate door panel production in Offranville for a
future Opel model will result not only in new business for Lear, but will lead
to 170 jobs for the region.  Lear also has been awarded a multi-million dollar
contract by GM to supply headliner systems for a future Opel model.
    In the UK, Lear will start production of seats next year for a new luxury
sport model at a 76,000-square-foot plant being built on a new site next to
the auto maker.  The facility will also include a logistics center for trim
and acoustic materials, which Lear also supplies for this model, and for the
electrical distribution system.
    In May, Lear announced a contract with Ford Motor Co. to develop the
electronic and electrical architecture, including the smart junction box, for
a future Ford vehicle.  Other noteworthy business wins include Lear's first-
ever electronics contract from Audi for a future vehicle; headliners,
instrument and door panels, interior trim and acoustic materials for the
European version of DaimlerChrysler's PT Cruiser; and seats for the Mercedes
SLK roadster and a station wagon based on the C-Class model.