Lear Takes Step Into Autonomous-Vehicle Systems
November 30 2015 - 8:30PM
Dow Jones News
Lear Corp. is moving into autonomous-vehicle systems with the
acquisition of a small Michigan software company, the latest
maneuver the auto supplier has taken to expand from making
traditional car parts to making bets on technology that could
disrupt the car business.
Lear, known best as an automotive seat maker, said Monday it
acquired Troy, Mich.-based Arada Systems, which specializes in
vehicle-to-vehicle and vehicle-to-infrastructure communications.
Financial details of the cash purchase weren't disclosed.
Arada employs about 45 people globally.
U.S. auto sales are near record highs and auto-parts makers have
reaped big profits following financial restructurings last decade.
Flush with cash, suppliers have been looking for acquisitions that
can help them provide the technology that allows vehicles to become
more capable of driving themselves. Executives of bigger auto
suppliers have said that smaller tech companies are expensive to
buy but necessary to own.
Among the bedrock technology needed are systems allowing
vehicles to communicate with other vehicles or read roadway
markings in order to maneuver without the aid of a driver. General
Motors Co., the largest U.S. auto maker by sales, will be the first
to introduce vehicle-to-vehicle technology with the launch of a new
Cadillac next year.
While dominant in seats, Lear has been expanding its electronics
business line with the goal of supplying the "electronic backbone"
of vehicles. It has thus far specialized in electrical
distribution.
Arada's expertise is in short-range communications and wireless
protocols such as global positioning. Lear plans to meld Arada's
work with Autonet Mobile, a California-based company it purchased
in August that focuses on technology that allows dealers to
communicate with cars as they drive.
The dealer technology is in high demand as auto makers look for
more ways to digitally update vehicles or fix software
problems.
Write to Jeff Bennett at jeff.bennett@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 30, 2015 20:15 ET (01:15 GMT)
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