UPDATE 1-Bankrupt supplier Lear, UAW in tentative contract

Thu Jul 16, 2009 3:19pm EDT
 
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DETROIT, July 16 (Reuters) - Bankrupt U.S. auto parts supplier Lear Corp LEARQ.PK said on Thursday it has reached a tentative contract agreement with more than 700 workers represented by the United Auto Workers union.

The new contract covers hourly workers at Lear's facilities in Arlington, Texas, and Wentzville, Missouri, which supply seating components for General Motors' large SUVs and full-size vans.

The GM vehicles include the Chevrolet Tahoe, GMC Ukon, Cadillac Escalade, Chevrolet Suburban and full-size vans such as GMC Savannah and Chevrolet Express.

Lear filed for Chapter 11 bankruptcy protection on July 7, representing the largest in a string of recent failures of auto parts suppliers and highlighting the pressure on the sector from sharply curtailed production and bankruptcies at automakers GM and Chrysler.

GM is Lear's largest customer, representing 23 percent of its global 2008 sales of $13.6 billion. (Reporting by Soyoung Kim, editing by Matthew Lewis)

 

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