Lear Has Good Potential to Expand Margins in Both of Its Segments

Lear is well positioned to capitalize on several trends in the global automotive industry, including automakers' focus on high-quality interiors, growth in the premium-vehicle segment, the proliferation of automotive electronics, and battery electric vehicles. Lear competes in seating and electrical architectures. A culture of continuous innovation, high customer switching costs, highly integrated customer engineering relationships, and lengthy duration vehicle programs give it a sticky seating market share of 26%, which management targets increasing to 29%. The premium-vehicle segment leads the way in the proliferation of electrical circuits, electronic devices, and digitalization, and we see Lear well set up to serve these customers.