UPDATE 1-Lear seeks to amend credit facility

DETROIT, Jan 6 (Reuters) - Lear Corp (LEA.N) said on Tuesday it is seeking to amend its credit facility in order to maintain financial flexibility amid a deep downturn in global auto sales.

Lear, which makes automotive seating systems and other parts, said it has initiated discussions with banks and engaged Goldman Sachs to assist in the proposed amendments to its primary credit facility.

Lear said it had fully borrowed amounts available under its revolving credit facility during the fourth quarter of 2008 in order to protect against "disruptions in the capital markets and further bolster its liquidity position."

It had about $1.6 billion in cash and cash equivalents as of Dec. 31, 2008, up from $500 million at the end of the third quarter.

"Our liquidity position is strong," Lear Chief Executive Bob Rossiter said in a statement.

"However, given the very challenging external environment, we are pro-actively addressing our capital structure to maintain our financial flexibility," Rossiter said.

Auto parts makers have been hurt by U.S. auto sales at the lowest level in at least two decades and financial strains at Detroit's automakers. The global credit crisis has put a further squeeze on the companies, rocking already fragile consumer confidence and making financing scarce.

General Motors Corp (GM.N) and Ford Motor Co (F.N), Lear's biggest customers, have slashed production in response to a steep drop in demand. GM and Ford account for more than 40 percent of Lear's global revenue.

(Reporting by Soyoung Kim; Editing by Bernard Orr)