DETROIT -- Lear Corp. has cut 60 jobs in its money-losing vehicle interiors business.
The seat and interiors supplier trimmed 30 salaried employees and 30 contract workers in its interiors system division in Dearborn, Mich., Lear spokeswoman Andrea Puchalsky said late last month.
Lear, of Southfield, Mich., has expressed an interest in putting its interiors business in a joint venture with New York investor Wilbur Ross. That strategy could fall through if the joint venture is unable to buy troubled interior parts maker Collins & Aikman Corp. out of bankruptcy protection.
Collins & Aikman, of Troy, Mich., is adding executive talent and new contracts to try to emerge as a stand-alone company from Chapter 11 reorganization rather than being purchased by an investor, such as Ross. Collins & Aikman expects to emerge from Chapter 11 by September.
Meanwhile, Lear is moving internally to cut costs in its interiors business. The division posted pretax losses in 2005 of about $185 million on revenue of $3.1 billion. That compares with pretax profits of $85 million in 2004.
Lear is consolidating the administration of its interiors business in Dearborn, Puchalsky said. Of the 668 employees in Dearborn at the end of December, she said, about 300 engaged in Lear's wiring operations were moved out, and another 100 supporting North American sales operations were moved.
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