LEA · CIK 842162
What Lear Corporation told the SEC could break it.
Lear's disclosures center on commodities and the trade policy around its cross-border auto-parts manufacturing. Material costs run about 64% of net sales, with primary exposure to steel, copper, and leather (copper, aluminum, and resins being central to its electrical connection systems), so commodity-price swings hit margins directly. That cost base is squeezed by 2025 U.S. tariffs on Mexico, Canada, China, and others — plus retaliation — which raise input costs and threaten customers' production, and by the USMCA's trilateral review and renewal in 2026, where non-renewal or adverse terms would weigh on its heavily Mexico-based manufacturing footprint.
3 self-disclosed vulnerabilities, pulled from its own filings — each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Regulatory & policy
- U.S. tariffs on Mexico/Canada/China (auto industry)medium
2025 U.S. tariffs (and threatened tariffs) on Mexico, Canada, China and others — plus retaliation — raise Lear's raw-material/component costs and threaten customers' production; mitigation has worked to date but is not assured.
“Since his inauguration in January 2025, U.S. President Donald J. Trump has announced various tariffs that impact industries around the world, including the automotive industry.”
- USMCA 2026 review/renewalmedium
The USMCA is subject to a trilateral review and renewal in 2026; non-renewal or adverse renegotiated terms would hit Lear's heavily Mexico-based manufacturing footprint.
“In addition to potential increases in customs duties and tariffs in the United States and other countries, the United States-Mexico-Canada Agreement ("USMCA") is subject to trilateral review and renewal in 2026.”
SEC filing →As of 2026
Commodity & input dependence
- steel, copper, leather (and aluminum/resins)medium
Material cost is ~64% of net sales; primary commodity cost exposures are steel, copper and leather (with copper/aluminum/resins key to electrical connection systems).
“Our primary commodity cost exposures relate to steel, copper and leather.”
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings — including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its customers
“In addition, Ford accounted for 12%, Mercedes-Benz and Volkswagen each accounted for 10% and Stellantis accounted for 9% of our 2025 net sales.”
Cited →Volkswagen AG
“In addition, Ford accounted for 12%, Mercedes-Benz and Volkswagen each accounted for 10% and Stellantis accounted for 9% of our 2025 net sales.”
Cited →Mercedes-Benz Group AG
“In addition, Ford accounted for 12%, Mercedes-Benz and Volkswagen each accounted for 10% and Stellantis accounted for 9% of our 2025 net sales.”
Cited →“In 2025, General Motors, one of the largest automotive and light truck manufacturers in the world, accounted for 22% of our net sales.”
Cited →
Its suppliers
“For 2025, our revenues from sales to our two largest customers, Lear Corporation (“Lear”) and Adient plc (“Adient”) were $234 million and $164 million, respectively, representing 16% and 11% of our product revenues, respectively.”
Cited →
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