Lear Strengthens Its Manufacturing Capability In China With New Joint Venture

Autoparts Report, April 20, 2002

Lear Corp. said it formed Nanjing Lear Xindi Automotive Interiors System Co., Ltd. (Lear Xindi), a joint venture with the Xindi subsidiary of Nanjing-based Yuejin Motor Group Corp. The Lear Xindi joint venture, to be located in Nanjing, has been selected to supply seat systems and wire harnesses for future products to be produced in China by Fiat, Iveco and Yuejin.

Lear Xindi is Lear's sixth and largest joint venture in China and is expected to generate initial annual sales of $40 million. Last year, Lear won a major contract from Ford-Changan to supply seats, interior trim and wire harnesses for the Ford Ikon, to be launched in January 2003.

Lear Changan in Chongqing, a joint venture between Lear China and Changan Group, will supply the seats and interior trim.

Lear - DCAC in Wuhan, a joint venture between Lear and Dongfeng Citroen Automobile Co., Ltd. (DCAC), will supply the wire harnesses.

"China represents a significant growth opportunity for the automotive industry and for Lear content over the next decade," said Randall Carron, Lear Senior Vice President - Asian OEM Division. "This new joint venture allows Lear and Xindi to combine our resources and broaden our respective customer bases in the region."

The company's existing business in China covers all the company's product segments -- seat systems, door panels, carpeting and headliners, and electrical distribution. Sales attributable to the six joint ventures are expected to exceed $150 million annually by next year, Lear said.

Lear first established operations in China in 1994 through its Lear - DCAC joint venture. In 1996, the company formed Jiangling Lear Interior System Co., Ltd., followed in 1997 by Lear Automotive Interior Trim Co., Ltd. and Songjiang Lear Automotive Carpet & Acoustics Co., Ltd., both located in Shanghai.

Lear Changan Automotive Interiors Trim Co., Ltd. was established in 1998.