Financial terms were not disclosed for the deal, announced April 29 and expected to close by the third quarter. Details could come April 30 when the automotive supplier is scheduled to release first-quarter financial results and address investment analysts.
“WIP brings valuable manufacturing engineering capabilities that are essential to advancing innovative automation solutions across our global operations,” Ray Scott, president and CEO of Lear, said in the release. “This acquisition will support Lear’s long-term strategy to strengthen our market leadership through operational excellence.”
Like other automotive suppliers, Lear has faced increased labor costs and scarcity pressures in the wake of the supply chain crisis, and more recently, from the ripple effects of the new UAW contracts with Detroit 3 automakers.
It’s not just in the U.S. Labor costs are on the rise around the world. Wage inflation has been a growing problem for Lear in Mexico, where Lear employs more than 50,000 workers across 40 plants.
A year ago, Scott said labor had emerged as the supplier’s top issue, causing the company to accelerate the integration of robotics at its factories.
“Our focus this year is on accelerating automation to address wage inflation and improve efficiencies in our plants,” Scott said on a call with investment analysts in February.
The acquisition of WIP will build on Lear’s integration of ASI Automation, Thagora Technology SRL and InTouch Automation, which together “span all critical areas of the manufacturing process,” the release said.
“This transaction gives WIP a unique opportunity to become part of a world-class automotive company, marrying WIP’s expertise in robotics and AI technologies with Lear’s industry-leading knowledge in product design, engineering, and manufacturing processes,” Ángel Rodríguez Fernández, WIP CEO and co-owner, said in the release.
