July 08, 2009

Another Bankruptcy - Lear

Lear Automotive just applied for Bankruptcy protection. Gads, now the suppliers are begginning to drop like flys.

It's gonna be awhile before I get a job ...

Southfield-based Lear Corp. is the latest auto supplier pushed into bankruptcy but the company expects to emerge quickly because it has already won significant support from key stakeholders for its restructuring plan.

The so-called pre-packaged Chapter 11 filing by Lear on Tuesday should pave the way for the seat maker to exit bankruptcy in four to six months.

Lear is a pretty big supplier, with them declaring bankruptcy I can only imagine how many smaller suppliers are, have or will be going belly up and closing for good in the next few months.

Although Lear is not going the route of the Chrsyler and GM bankruptcies, they are doing it the old fashioned way and will carry on day to day operations as normal. Which is good because there will no be no or almost no interuptions to the people they supply (Ford, GM, Toyota, etc) and they will still be buying from their suppliers.

This is just the beginning though, I fear what is to come because it's only going to make the employment situation in Michigan worse because suppliers employ a major portion of the people in the auto industry.

Posted by Quality Weenie at July 8, 2009 10:23 AM

Hope n' Change. Nobody asked what the change would be... :(

Posted by: Pam at July 8, 2009 10:46 AM

At party over the weekend I met a couple from Michigan. They came down here for jobs...couldn't get anything back there.

Obama has done such great things for our country.

Posted by: Mrs. Who at July 8, 2009 12:08 PM