Lear Corporation expanding TC presence

Mark Urban, The Record-Eagle, Traverse City, Mich.
·4 min read

Dec. 16—LANSING — Lear Corporation received more than $6.4 million in incentives from the state earlier this week to expand production of electric vehicle components, according to a release from the Michigan Economic Development Corporation.

The incentives are part of a $112 million capital investment by Lear Corporation, according to a Tuesday memo from the MEDC. The bulk of the expanded project includes rehabbing a 120,000 square feet facility in Oakland County's Independence Township near Clarkston, but is also expected to impact its Traverse City facility and Southfield headquarters.

Company officials said an email it is still early in the process to determine the expansion of the Traverse City facility or how many additional jobs may result. Lear currently employs about 200 at its 1110 Woodmere Ave. location in Traverse City, but did say it "continues to be a strong contributor to Lear's overall production and financial success."

The MEDC approved Lear's request for a $4.5 million Michigan Business Development Program (MBDP) grant and a 15-year 100% State Essential Services Assessment (SESA) exemption request, according to the MEDC memo.

"In addition to the Independence Township facility, to support this new project, the company is also considering expanding its current Traverse City plant for manufacturing components relating to the EV battery pack, specifically bus bars, battery interface and battery module components," the MEDC memo said.

Lear currently produces automotive seats and electrical and electronic systems for the auto industry, according to company officials.

"The Traverse City plant is part of our Connections Systems business," the email response from Lear's communications/media inquiries said. "It produces such products as electrical terminals, bus bars and fuse boxes.

"The Traverse City facility is a crucial part of Lear's supply chain for our Battery Disconnect Unit (BDU) product, which is the primary interface between a vehicle's battery pack and electrical system."

General Motors chose Lear to supply BDUs on all of its full-size SUVs and trucks built on the Ultium EV platform through 2030.

MEDC CEO and Michigan Strategic Fund Chair Quentin L. Messer, Jr. said in an email that machinery and equipment installation "consistent across the facilities" should be completed in 2023 with production "expected to begin in early 2024."

Lear purchased its current location in Traverse City in 1999.

The manufacturer was located in a massive plant at 1567 S. Airport Road. Lear employed nearly 1,000 people in its heyday at that location, according to a February 2014 Record-Eagle article.

The plant closed in 2004 cost the community about 300 jobs. The Faith Reformed Church of Traverse City purchased the structure in 2008, according to the previous article.

Environmental Protection, Inc. bought the building in the summer of 2013 and moved to TC from Mancelona. EPI operates out of the facility near the intersection of LaFranier and South Airport roads and leases out some of the space and ancillary buildings to other businesses.

According to the project description submitted to the MEDC, Lear Corporation plans to "manufacture highly technical electrification sub-systems for batteries that will be supplied to its customers through 2030.

"The specific components to be supplied are battery disconnect units (BDUs) and interconnect cell boards (ICBs), which are highly complex components that control power transfer from the vehicle's battery to its electrical systems. Together, the BDU and ICB allow EVs to charge faster and driver farther, while delivering higher performance requirements."

The expansion is expected to create up to 500 new jobs at the new production facility in Independence Township, Traverse City and Sterling Heights. The new jobs are expected to pay an average of $20.30 an hour plus benefits, according to the MEDC memo.

Lear Corp. filed for Chapter 11 bankruptcy protection in federal court in the summer of 2009, a move company officials told the Record-Eagle for a July 8, 2009 article had little, if any effect on operations in northern Michigan because it was "a financial re-organization, rather than an operational re-organization."

Lear Corporation was founded in Detroit in 1917 and went public in 1994. Lear employs more than 160,000 at the 253 facilities it operates in 38 countries, according to its website. Lear generated sales of more than $19 billion in 2021.