Lear Considers Strategic Retreat from Russia
American automaker Lear plans to divest three of its Russian operations in the first half of 2023. The plants have been shut for nearly a year, with only a small team of 50 to 60 technicians left to handle maintenance. The move reflects broader corporate priorities and the challenging economics of continuing manufacturing activity in that market.
Russia accounted for a modest slice of Lear’s global business. Previously, revenue from Russia hovered around 100 million dollars annually, a fraction of Lear’s overall footprint. The company is expected to report total revenue well above 20 billion dollars for the year 2022, underscoring the scale of Lear’s worldwide operations and the relatively small weight of the Russian assets in the grand scheme.
In the third quarter of 2022, Lear reported losses in Russia totaling about 19.9 million dollars, equivalent to roughly 1.37 billion rubles. The calculus has since shifted: profitable sales of the Russian plants are no longer viable, and asset values have declined. Senior leadership indicated that the sales transactions should wrap up in the first half of 2023, with potential buyers identified despite some legal obstacles.
Headquartered near Detroit, Lear’s parent company sits among the world’s top ten auto parts suppliers by revenue, demonstrating the breadth of its global supply chain. In 2021, Lear’s revenues reached approximately 19.3 billion dollars, illustrating the company’s scale in the auto industry.
In Russia, Lear manufactured fitted car seats for multiple automakers and assembly programs, including collaborations with Volkswagen, Peugeot, and Citroën, reflecting the firm’s role in supplying major European brands through regional manufacturing networks.
Automotive News Europe
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