Lear Plans to File For Chapter 11

Lear in particular is heavily dependent on the slumping North American and European auto markets, with 36% of its sales coming from North America and 49% coming from Europe.

Lear, which posted $13.6 billion in sales for 2008, is a key supplier for both General Motors (GMGMQ Quote) and Ford. The pair represent the company's two largest customers and account for a combined 40% of its sales.

Lear is also one of Ford's key component and service suppliers, part of Ford's Aligned Business Framework, which increases the automaker's collaboration with the companies.

Auto sales in June continued to remain troubled though the downturn that has plagued the industry for at least a year showed signs of easing, according to monthly sales reports from carmakers Wednesday. Industrywide sales fell 28% in June, according to Autodata Corp. Volumes are down 35% the first half of the year.

Shares of Lear fell 17 cents, or 35%, to 31 cents in after-hours trading, following a loss of 2 cents, or 4%, on Wednesday to 48 cents.