Lear Will Close Five Plants Worldwide

Posted June 28, 2005, 9 a.m. EST

From the Fort Worth Star Telegram

SOUTHFIELD, MI —Lear Corp. announced a restructuring plan Monday that includes closing five plants in the United States and Europe.

Lear officials declined to say which of the company’s 300 plants could be affected but said up to 7,700 jobs will be cut globally. The company plans to move work from U.S. and European plants to lower-cost areas.

Lear supplies major components and subassemblies to most of the major auto manufacturers. It employs 680 workers at a plant on East Bardin Road in Arlington, supplying seats and interior components to the General Motors truck assembly plant.

Mel Stephens, vice president of corporate communications, said the announcement was “a broad framework” and details will be revealed later. “This will be implemented over the next 12 or 24 months.”

Automotive industry suppliers have felt the pain as auto manufacturers, particularly GM and Ford, have struggled to prop up sales and stem the flow of red ink. Manufacturers have pressured suppliers to cut their prices for parts, components and services.

Lear said the restructuring will cost up to $250 million, with about $30 million incurred in the second quarter of 2005. Standard & Poor’s Ratings Services put the company on a negative credit watch.

Lear,a Fortune 500 company, is headquartered in the Detroit suburb of Southfield and employs about 110,000 workers in 34 countries. It had $17 billion in sales in 2004.

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