“The majority of the customers were of the mindset that these were more transitory and kind of wait-and-see on getting some of these things resolved, where I believe right now the majority of our customers are more in line with a general policy and guidelines for how they’ll resolve it,” he said.
Cutting costs
Meanwhile, Lear has worked to reduce its labor costs. The company, which employs more than 160,000 people globally, said it cut headcount by 7,700 people earlier this year as net income plunged.
The supplier is making headway in expanding its E-Systems business, which won a contract to supply General Motors with battery disconnect units through 2030. The contract spurred plans for a new $80 million plant in Michigan.
Lear said it achieved $400 million of new EV business wins this year and has a “clear path” to $1.3 billion of annual EV revenue by 2025.
“We continue to focus our efforts on operational efficiencies, developing innovative solutions for our customers, and increasing earnings and cash flow,” Scott said in a news release.
Lear, based in suburban Detroit, ranks No. 10 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $19.3 billion in 2021.
