Southfield, MI, June 27—-Auto interior company Lear said Monday that will close some plants and combine others as it moves certain manufacturing operations to lower-cost countries to save money in the face of unfavorable conditions in the auto industry.
The company said it expects further production cuts by customers and said it will revise year-end guidance to include these reductions and its restructuring. Ford and GM, two automakers, which are supplied by Lear, have been struggling in recent months and both are scaling back their operations.
Lear said the restructuring will cost up to $250 million before taxes and initially involve five facilities in North America and Europe, along with certain administrative operations. The changes will "better align Lear's manufacturing capacity with the changing needs of its customers," eliminate extra capacity, lower operating costs and improve efficiency, the company said in a statement.
Lear, which employs about 110,00 people in 34 countries, posted sales of about $17 billion in 2004. The United States is the company's largest market and Lear sells to a host of automakers including Ford Motor Co., General Motors Corp. and DaimlerChrysler AG.
