Lear Corporation goes deeper into connectivity
The US seat manufacturer Lear Corporation took a step deeper into the world of connectivity last week.
With an acquisition that has seemingly nothing to do with its business, lear it will spend $320 million to buy Xevo, an automotive software company with 300 employees in Seattle and Tokyo. Xevo's technology connects drivers and their vehicles to mobile applications and services through touch screens and their vehicle-branded mobile apps in 25 million vehicles, primarily in the U.S.
Just prior to the acquisition announcement, Xevo said it will partner with Domino's Pizza for a new ordering platform that can be preloaded into vehicles. The system allows drivers to place and track orders on their vehicle's touch screen.
Lear CEO Ray Scott said the plan represents Lear's strategic direction: «With the acquisition of Xevo, Lear advances its leadership position in the global trends reshaping the automotive industry. This transaction is consistent with our stated capital allocation strategy. It allows us to enhance our capabilities in software, services and data analytics, and strengthen our market position in connectivity».