GM awards Lear interior business

General Motors has given Lear Corp. complete sourcing responsibilities for the company’s future large and luxury car program. The contract is estimated to be worth $825 million annually, making Lear accountable for the design, engineering and manufacture of interiors for the Buick LeSabre and Cadillac DeVille beginning with the 2005 model year.
The contract gives Lear responsibility for everything in the interior but heating and air conditioning, safety and restraint components. It is the first time GM has conferred this degree of responsibility to an interior supplier. The contract is widely viewed as another step in the direction of giving suppliers increasing responsibility in the design and building of vehicles. Suppliers have been campaigning OEMs to increase levels of outsourcing, but OEMs have proceeded cautiously fearing protests from the UAW and CAW. Lear, however, is 100% unionized.
A GM spokesman referred to the contract with Lear as the next natural step for the car company. Lear has significant in-house manufacturing capacity in Canada and the U.S., but will also rely on GM-approved Tier 2 suppliers for certain components.