“We’re moving in the right direction,” Scott said on a call with investors. “We have the right strategy. We have the right plan. Short-term issues will be behind us at some point, and we’ve positioned this company for long-term success.”
Lear (NYSE: LEA) was trading at $174.69 as of late morning Tuesday, a marginal decrease from where it opened the day.
The global microchip shortage continues to be a primary source of the automotive industry’s struggles. Global car production decreased 19 percent from last year to 16.2 million units. Production in North America dropped 25 percent to 3 million units.
Commodity price increases, labor shortages and limited visibility on production schedules are also negatively impacting Lear. Scott said those challenges are expected to continue into next year, but at the same time, strong demand, low dealer inventory and a strong backlog are reasons to remain positive.
The company also pointed to its recent acquisitions —including Kongsberg Automotive’s interior comfort division, and a recent joint venture with Shinry Technologies Co. Ltd. to expand electric vehicle capabilities —as plays for long-term growth and stability.
“Our industry continues to be significantly impacted by COVID-19 and global semiconductor shortages,” Scott said in a news release. “During these challenging times, we remain focused on supporting our customers and positioning our company to capitalize on opportunities when the industry recovers.”