Lear Business Report FY2007
Business Highlights
Financial Overview
Overview by Region Asia - Asian-related sales have grown from USD 800 million in 2002 and USD 2.9 billion in 2007. Additional sales growth is expected in 2008, expanding relationships with Hyundai, Nissan and certain regional manufacturers. -The Company is well-positioned to take advantage of China's emerging growth as it has an extensive network of high-quality manufacturing facilities across China providing seating and electronic and electrical products to a variety of global customers for local production. North America/Europe -The Company plans to continue to support the Asian automotive manufacturers as they invest and expand beyond Asia, into North America and Europe. It has recently increased its Asian related business through seating and electrical business with Nissan and Hyundai. -During 2007, North American production levels declined by approximately 2% as compared to a year ago, and production levels on several of their key platforms have declined more significantly. -In Europe, the market structure is fragmented with significant overcapacity and the Company's key platforms have experienced production declines. Contracts (FY2007)
The Company has been awarded a new contract to supply seating systems to Bombardier Recreational Products Inc. (BRP) for its Can-Am line of all-terrain vehicles (ATV). The new business is for a term of five years. The seats will be produced at its San Lorenzo, Mexico seating facility.In May 2007, it will begin providing complete seating assemblies to BRP's ATV assembly plant in Juarez, Mexico. (From a press release on Mar. 15, 2007) The production of soy-based foam for seats begins in the 2008 model year Ford Mustang. The car will use the industry's first soy-based flexible foam in the seat backs and seat cushions at the Auto Alliance International factory in Flat Rock, Michigan, home of the Ford Mustang. (From a press release on Jul. 12, 2007) >>> See R&D for details Joint-ventures |
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R&D Expenditure
-The divestiture of its interior business resulted in a 13 million USD reduction in R&D costs. R&D Structure - The Company has the ability to integrate the engineering, research, design, development, and validation testing of all automobile interior systems. - The Company has more than 5,000 engineers worldwide. - Technology development is conducted at their 5 advanced technology centers and at their product engineering centers worldwide. - Global Innovation & Technology Center located in Southfield, Michigan, is their central location for consumer research, benchmarking, craftsmanship and individual design activity. - The Company has state-of-art acoustic testing and instrumentation and data analysis capabilities. - They also maintain electromagnetic compatibility labs at several of their electronic and electrical facilities. -The Company has a seven-dimensional view of product and technological innovation. These dimensions are Safety, Comfort & Convenience, Environmental, Craftsmanship, Commonization, Infotainment and Flexibility. Germany The Company has broken ground for a new Sound Laboratory in Kronach, Germany, scheduled to open in 2008. The new sound laboratory in Kronach will be a state-of-the-art product creation and validation facility and an integral part of its global center for infotainment systems and is targeted to open in the first half of next year.(From a press release on Oct. 2, 2007) China 2 new engineering/R&D centers in Shanghai Technology - Intertronicsツョ is the Company's umbrella technology, reflects its ability to integrate electronic products with automotive interior systems. - The Company continues to develop new products and technologies, including solid state junction boxes and new radio frequency products. They have created certain brand identities, which identify products for their customers. - ProTec邃「 brand products are optimized for interior safety. - Aventino邃「 collection of premium automotive leather - EnviroTec邃「 brand products are environmentally friendly, such as SoyFoam邃「. New Production Technologies - SoyFoam邃「 is a soybean oil-based flexible foam material for use in automotive applications. The Company, working in partnership with Ford, has developed market-ready seating applications for SoyFoam邃「. The first application will appear in the 2008 Ford Mustang. - Advantages of SoyFoam邃「 (1)Lower environmental impact to produce (2)Up to 24% renewable vs. traditional non-renewable petroleum-based foam (3)Reduces dependency on volatile energy markets (4)Potential for reducing automotive seatng foam costs as use reaches critical mass |
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Capital
Expenditure
Overseas Investments -China 19 manufacturing facilities, 6 new in 2007 -India 7 manufactuirng facilities, 3 new in 2007 |
R&D
R&D Expenditure
(in million USD) | FY2007 | FY2006 | FY2005 |
Amount |
134.6 | 169.8 | 174.0 |
-The divestiture of its interior business resulted in a 13 million USD reduction in R&D costs.
R&D Structure
- The Company has the ability to integrate the engineering, research, design, development, and validation testing of all automobile interior systems.
- The Company has more than 5,000 engineers worldwide.
- Technology development is conducted at their 5 advanced technology centers and at their product engineering centers worldwide.
- Global Innovation & Technology Center located in Southfield, Michigan, is their central location for consumer research, benchmarking, craftsmanship and individual design activity.
- The Company has state-of-art acoustic testing and instrumentation and data analysis capabilities.
- They also maintain electromagnetic compatibility labs at several of their electronic and electrical facilities.
-The Company has a seven-dimensional view of product and technological innovation. These dimensions are Safety, Comfort & Convenience, Environmental, Craftsmanship, Commonization, Infotainment and Flexibility.
Germany
The Company has broken ground for a new Sound Laboratory in Kronach, Germany, scheduled to open in 2008. The new sound laboratory in Kronach will be a state-of-the-art product creation and validation facility and an integral part of its global center for infotainment systems and is targeted to open in the first half of next year.(From a press release on Oct. 2, 2007)
China
2 new engineering/R&D centers in Shanghai
Technology
- Intertronicsツョ is the Company's umbrella technology, reflects its ability to integrate electronic products with automotive interior systems.
- The Company continues to develop new products and technologies, including solid state junction boxes and new radio frequency products. They have created certain brand identities, which identify products for their customers.
- ProTec邃「 brand products are optimized for interior safety.
- Aventino邃「 collection of premium automotive leather
- EnviroTec邃「 brand products are environmentally friendly, such as SoyFoam邃「.
New Production Technologies
- SoyFoam邃「 is a soybean oil-based flexible foam material for use in automotive applications. The Company, working in partnership with Ford, has developed market-ready seating applications for SoyFoam邃「. The first application will appear in the 2008 Ford Mustang.
- Advantages of SoyFoam邃「
(1)Lower environmental impact to produce
(2)Up to 24% renewable vs. traditional non-renewable petroleum-based foam
(3)Reduces dependency on volatile energy markets
(4)Potential for reducing automotive seatng foam costs as use reaches critical mass
Investment Activities
(in million USD) |
FY2007 | FY2006 | FY2005 |
Seating | 114.9 | 161.1 | 229.2 |
Electronic & Electrical | 80.3 | 77.0 | 102.9 |
Interior | 1.2 | 98.7 | 190.9 |
Other | 5.8 | 10.8 | 45.4 |
Total | 202.2 | 347.6 | 568.4 |
Overseas Investments
-China
19 manufacturing facilities, 6 new in 2007
-India
7 manufactuirng facilities, 3 new in 2007