Lear Corp. President Robert Rossiter says Europe may see its first supplier contract for a complete interior module within two years. He spoke to Automotive News Europe's Edmund Chew.
What are the key trends in the interiors business in Europe?
More and more modules. Outsourcing continues. We have been awarded two contracts to supply complete driving units - the instrument panel and everything that goes with it.
Which module is growing fastest?
The greatest potential for us is in doors and cockpits. We have also gained new headliner business. One of our projects is going to be a near-complete interior. We are going to supply all of the seating, the instrument panel, the doors and the headliners, all out of the same facility.
When are we going to see a complete module in Europe?
We are one system away right now. I wouldn't be surprised if you see a major award in the next two years.
What is happening to margins?
The base price of the product we supply is actually going down, not up, but margins are strengthening. As we have been able to design more products, we have been able to take more responsibility and purchase components at a lower cost.
How is the rationalization of the Tier 2 suppliers developing?
Significant progress has been made. But we are not trying to eliminate suppliers, we want to build a strong band of suppliers that can provide us with technology and design and make an investment in our futures.