Southfield, Michigan - Automotive seating suppliers Lear Corp and Toyota Boshoku are to restructure their current joint venture, which supplies seating systems and other interior components to Toyota Motoring Manufacturing Indiana for the Sienna minivan, the companies said in a 2 Dec joint statement.
The existing joint venture will be dissolved, with Lear receiving $35 million in cash in exchange for its minority interest in the joint venture. Lear will supply Toyota Boshoku with certain components for the Sienna minivan and both parties will continue to compete directly for other business on a Tier 1 basis, the statement said.
The restructuring will include a working group to jointly "identify and pursue sourcing opportunities for certain seating components as well as purchasing opportunities for key commodities such as steel, foam and textiles," the companies said.
Lear's chairman Bob Rossiter said the announcement represents an evolution in the partnership between the companies. "While our companies remain competitors, it makes sense for us to collaborate on certain product, technology and purchasing initiatives by leveraging each of our unique strengths for the benefit of our mutual customers," he added.