William Sachin's questions to Lear Corp (LEA) leadership • Q3 2024
Question
William Sachin, on for Adam Jonas of Morgan Stanley, asked how Lear is managing potential tariff risks, particularly with Mexico, and whether the OEM focus on EV profitability is leading to new price-down or de-contenting pressures.
Answer
CFO Jason Cardew stated that a major tariff disruption with Mexico is viewed as having a low likelihood, but noted that Lear's footprint shift to Honduras provides some diversification. CEO Raymond Scott explained that OEM cost pressures are actually creating opportunities for Lear's modular and innovative solutions, which can redesign components and drive out system cost, rather than leading to simple price-downs on existing parts.