Lear to hire hundreds for Hammond expansion

Mar 3, 2010 — The Times

Bowdeya Tweh

Mar. 3, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- Lear Corp. (NYSE:LEA) plans to increase production at its Hammond seat manufacturing facility and add 285 jobs this year, the company announced Tuesday.

Lear plans to invest more than $2.2 million at the factory to make seating for the Ford Explorer SUV, said spokesman Mel Stephens. Southfield, Mich.-based Lear has about 160 workers at the plant and plans to begin hiring once it completes upgrades to its manufacturing lines.

"Out of the many places that Lear could have chosen to site this new production, there's no doubt that Northwest Indiana was the best choice," Gov. Mitch Daniels said.

Lear officials said the Hammond factory, 1401 165th St., has supplied parts to Ford Motor Co.'s (NYSE:F PRS) (NYSE:F PRA) (NYSE:F) Chicago Assembly Plant since the mid-1990s.

Ford said that in January the first Explorer vehicle will roll off an assembly line at Ford's Chicago plant at 126th Street and Torrence Avenue in the fourth quarter. The automaker's Chicago Heights stamping plant also will support production of the SUV. Ford also said it would hire hundreds of Chicago-area workers later this year to staff an added production shift at the assembly plant.

Jaime Luna, president of United Auto Workers Local 2335, which represents Lear's hourly workers, on Tuesday said workers are prepared to ramp up seat production and are awaiting the launch of the vehicle.

"We're looking forward to many years of productive business (with the Explorer)," Luna said.

About 139 employees work at the facility, and Luna said about 100 laid-off employees have first dibs at the positions opening up.

New applicants, however, can apply for the remaining positions, and a sign inside the plant's visitors entrance directs applications to be made at WorkOne locations in Gary and Hammond.

The company is nearly four months removed from exiting Chapter 11 bankruptcy protection, where it reduced about $2.8 billion in debt.

The Indiana Economic Development Corp. offered Lear up to $1.7 million in performance-based tax credits and up to $57,000 in training grants based on the company's job creation plans.

Lear's Hammond location lies within the city's enterprise zone, which qualifies the business and workers for exclusive tax incentives, including a loan interest credit, employer and employee wage credits and property tax deductions.

"The city of Hammond and Lear have enjoyed a positive partnership since the plant was built," Mayor Thomas McDermott Jr. said. "Lear was awarded a tax abatement status to assist their multimillion-dollar expansion in 2004 and 2005. I believe the decision to expand here is a result of the collaborative efforts between Lear and the city. I also believe that they've chosen to bring additional jobs to Hammond because of our Northwest Indiana work ethic."

Lear -- along with employment at the Hammond facility -- follows the ebb and flow of the fortunes of automotive manufacturers in North America and Western Europe. Last year, Lear's largest customers, General Motors Co. and Ford, sustained North America vehicle production declines of 44 percent and 16 percent, respectively.

"Many of these customers have experienced declines in market share in their traditional markets. In addition, a disproportionate amount of our net sales and profitability in North America have been on light truck and large SUV platforms of the domestic automakers, which have experienced significant competitive pressures and reduced demand," the company said in its annual report to the Securities and Exchange Commission.

In 2008, two sets of layoffs hit the Hammond facility as a result of the economy and the Ford Chicago Assembly Plant cutting down to one production shift. At the time, a Lear spokeswoman estimated employment at the facility two years earlier was close to 400.

In February, Ford sold more vehicles than GM for the first time since August 1998. Ford had 17 percent of U.S. market share last month.

Net sales stood at $9.7 billion worldwide, down from $13.6 billion in 2008. In the two months ending Dec. 31, Lear had a $3.8 million loss.

Lear stock traded at $72.14 per share, up $0.90 Tuesday afternoon.

Times staff writer Lauri Harvey Keagle and The Associated Press contributed to this report.

NOTEWORTHY

In February, Ford sold more vehicles than GM for the first time since August 1998.

Newstex ID: KRTB-0129-42531687