Lear Corporation (Southfield, Michigan), one of the largest automotive interior parts makers in the world, has entered into agreements to acquire a 75% share of the automotive fabric business of New Trend Group. Financial terms of the agreement were not disclosed.

Lear Corporation has 215 production bases in 35 countries with 91,000 employees, with global operational presence in automotive seating system designing and manufacturing. Sales in 2007 amounted to $16 billion.

New Trend Group, founded in 1986, is an automotive fabric and plastic manufacturer, distributing seat trims in China, as well as being an exporter to Europe and the US through its two automotive fabric production bases in China. The company produces fabric used for seat covers, vehicle headliners and automotive door panels and carpets, and holds a wide range of automotive plants as clients such as GM, Volkswagen and Ford from Europe, Toyota and Nissan from Japan and Hyundai, China Brilliance and Geely from Asia.

Lear Corporation, in its automotive seat business, has been obtaining seat materials externally and carrying out production from cut and sew processes in-house so far. This acquisition will provide the company with cost-reductions in supply by self-manufacturing seat covers and as well as offering, the potential for incremental sales growth by becoming a fabric supplier itself to a broad range of major automotive manufacturers.

Following the launch of a seat trim, "Aventino" of premium leather in the fall of 2007, the company was looking for additional opportunities to release new products. With this acquisition, the company will have a wide selection of products for various seat trims including woven and knitted fabrics.