Driving business forward

Fortune 500 company Lear Corporation is a leading global supplier of automotive seating and electrical power management systems. Emma-Jane Batey spoke with Gideon Jewel, President Lear Europe, Wayne Meyrick, MD Lear UK and Rob Wollaston, Advanced Sales Manager Lear UK.

With 242 manufacturing facilities in 33 countries, of which 60 are located in Europe and Africa, leading global manufacturer and distributor of automotive seating and electrical power management systems, Lear Corporation, generated sales of €17.86 billion in 2006. However, with the company’s experience of the recession described by Lear UK MD Wayne Meyrick as ‘absolutely brutal’, it’s clear that its ambitious plans for growth in 2011 and beyond come on the back on some careful consolidation.

Gideon Jewel told Industry Europe “Fortunately most industries have seen a recovery from the lowest ebb of the global economic crisis, where the automotive industry was particularly affected. As a leading global supplier traditionally associated with complete systems, Lear has worked especially hard to re-engage with our clients and be sure to be well-positioned to benefit from the expected growth in the market. One segment that Lear expect to enjoy significant growth in is in the growth of electric and hybrid vehicles.””

Positive changes

The European automotive industry has certainly taken a major tumble, with 20 million vehicles produced annually prior to the recession and just 14 million since. Wayne Meyrick, MD Lear UK, added, “We’ve had to restructure and lose some people, but we are now seeing strong signs of improvement across the industry, most notably in the electric and hybrid vehicle segment where our battery chargers and smart modules, which are designed to help how the vehicle architecture works, are a significant growth area. We are increasing our production in these areas, and have started to make investment in additional state-of-the-art facilities in North Africa in order to further increase our capabilities.”

North Africa is noted as a location for strategic development as it offers both business potential and economic benefits. Gideon Jewel explained how Lear has invested in technology for the continued development of lightweight products and vertical integration potential as the region offers attractive labour rates and investment opportunities, as well as being a good location for transportation and logistics.

The company supplies ‘all the car manufacturers in Europe’ and, as such, has a strong understanding of the changing face

Gideon Jewel Wanye Meyrick

of the automotive industry. In addition to its existing European manufacturing facilities, Lear are making significant investments in both North Africa (despite recent turbulence) and Russia. Gideon Jewel, President Lear Europe, said, “We see Russia and North Africa as important geographical areas for business development and they are key areas of investment. We are in the process of investing well over €30m in those markets alone, with funds put into factories for complete seat and component manufacturing, wire harnesses and electronics. Our new investments will give us technologically advanced manufacturing space, with a competitive manufacturing footprint”

The two core divisions at Lear Corporation are the seating systems division and the electronic systems division, both of which work closely together to deliver carefully designed and manufactured solutions to the global automotive industry. The battery chargers produced by Lear are designed to offer a viable backup for electric vehicle owners as second and third batteries are needed to sustain their electric vehicle usage. Available in 12, 24 and 48 volts, the batteries represent a key market for Lear now and in the future.

Having spent considerable time and resources during the recession in ensur-

ing its product portfolio is adapted to the changing demands of the automotive industry, Gideon Jewel is clear that Lear is stable going forward. He said, “We continue to make the exceptional quality car seats and structures, mechanisms, foam, trim covers and electrical components that we have built our reputation on, with all of the European car manufacturers working with us to ensure our partnership is mutually beneficial as the automotive industry picks up. But what we’re especially excited about is our significant growth expectations for our involvement with the electric and hybrid vehicle market, particularly as it sits closely with our on-going commitment to offering environmentally responsible solutions.”

Investing in the future

The positive environmental approach at Lear reflects its future-focused development strategy. The company continues to make strong investments in new technology and is continually working to track and reduce the emissions and environmental impact of its products both in their manufacture and through the life cycle.

Lear Corporation is positive about 2011 and beyond. “The outlook is positive. Our customers have some exciting cycle plans, that we’re positioning both our footprint core products for” added Rob Wollaston, Advanced Sales Manager. Mr Jewel concluded, “We’re feeling very good about our activities worldwide, with our prediction for excellent performance in Europe, Russia and North Africa, with considerable investment in technology and innovation playing an important role alongside our strategic growth in emerging markets and with exemplary industry relationships that guarantee we offer what our customers want, when they want it.” n