Lear Corporation is set to usher in a new era of automated manufacturing with its new Orion facility in Michigan. The plant is a reference site for the company’s global operations, showcasing the transformative impact of advanced automation and integrated logistics in the production of automotive components and optimizing operational efficiency.

President and CEO Raymond Scott confirmed on the company’s Oct. 30 earnings call that the facility is on track to open in 2027. The project is expected to reduce conversion costs by 10 to 15 percent and will provide a model to be replicated throughout Lear’s international manufacturing base.

The Orion plant will start out making seating systems for three General Motors models: the Cadillac Escalade, Chevrolet Silverado and GMC Sierra. Lear also plans to deploy the approach to other manufacturing sites and programs, including Ford’s Super Duty vehicle line.

A decade of technology investment in the project

Lear’s management says Orion is the result of some 10 years of investment in acquisitions, industrial automation and proprietary technology development.

The company has been building up its capabilities gradually through acquisitions of WIP Industrial Automation, Thagora Technology and InTouch Automation. These transactions have enabled Lear to develop proprietary technologies tailored to its manufacturing requirements.

Scott views these capabilities as a significant competitive advantage, generating an industrial model that would be hard for competitors to reproduce.

One of the more obvious examples is Orion’s two automated storage and retrieval systems (ASRS). One is for raw materials and components, like foam, the other for the finished products.

Both systems were developed by an internal team created post- Lear acquisition of ASI Automation.

Scott noted that Lear’s ownership of the intellectual property and control over the technology roadmap allows it to deploy these solutions across its global manufacturing footprint.

Integrated intralogistics links the whole production process

Orion is not just a typical warehouse automation system. Its operations are organized around what Scott calls integrated intralogistics, an interconnected intelligence system that coordinates activities across the factory.

The platform connects inventory management, material handling, storage and real-time operational decisions. It traces the movement of parts from the time they arrive at the facility's loading dock until finished seating systems leave the facility.

This combination is designed to increase visibility across production activities and enable quicker adjustments based on operational data.

The plant will feature a variety of automation technologies, including:

  • Two automated storage and retrieval systems for raw materials and finished goods.

  • A overhead supported material storage and delivery system.

  • Automated guided vehicles (AGV).

  • Automatic loading of the trailers.

  • A four directional storage system.

  • Autonomous mobile robots (AMRs).

  • Industrial smart ovens.

  • Automated end-of-line test equipment.

  • Vision inspection systems enabled by AI.

Lear is also introducing proprietary automation applications to enhance workforce and production management. This includes cycle-time deviation monitoring and dynamic-line scheduling.

Getting employees to do higher-value work

Automation strategy is more than simply speeding up production or cutting down on labor intensive operations. Lear also hopes to transform the way its workforce engages with the manufacturing process.

“We’re moving toward automated execution, which means our employees can focus on identifying and solving operational issues as opposed to doing repetitive routine tasks,” Scott said.

Lear said it expects to improve efficiency, inventory management and optimize manufacturing decisions by linking together multiple production activities through ongoing monitoring, analysis and real-time adjustments.

The Orion project integrates physical automation with digital coordination, producing a manufacturing environment where equipment, materials and operational information are interconnected.

IDEA by Lear strategy moves to new industrial phase

The upcoming launch is also a major milestone for the implementation of Lear’s IDEA by Lear strategy, unveiled a little more than two years before the planned opening of the facility.

The program aims to fast track the uptake of digital technologies and automation to make manufacturing processes more efficient.

Scott recalled investors and analysts wondering whether Lear would have to fundamentally change its traditional operating model. That shift is now happening, particularly in the company’s approach to sourcing and manufacturing automotive seating systems, the CEO said.

Lear plans to develop with Orion a scalable industrial blueprint of proprietary automation, integrated intralogistics and digital production management. The Michigan plant is expected to set the stage for expanding those capabilities to more plants and vehicle programs around the world.