Exhibit 99.1

FOR IMMEDIATE RELEASE

                                        LEAR CONTACT:
                                        MEL STEPHENS
                                        (248) 447-1624

               LEAR ENTERS DEFINITIVE AGREEMENT TO CONTRIBUTE ITS
                  EUROPEAN INTERIORS BUSINESS TO JOINT VENTURE

     SOUTHFIELD, MICH., JULY 20, 2006 -- Lear Corporation [NYSE: LEA], one of
the world's largest automotive interior systems suppliers, today announced it
has entered into a definitive agreement with International Automotive Components
Group, LLC (IAC), Lear's joint venture with WL Ross & Co. LLC (WL Ross) and
Franklin Mutual Advisers, LLC (FMA), to contribute substantially all of the
Company's European Interiors Systems Division (ISD Europe) to IAC in exchange
for a 34% equity interest in IAC, subject to adjustment.

     "The combined European Interior operations of Lear and Collins & Aikman
represents a large and well capitalized enterprise in Europe, providing a solid
platform for improving ongoing operating performance," said Bob Rossiter, Lear
Chairman and Chief Executive Officer. "We have been focused on developing a
solution to address operating challenges in this segment and we believe the
European transaction is a positive development for our customers and our
shareholders. We also are continuing to focus our attention on a solution for
our North American Interiors business.

     ISD Europe operations included in the transaction consist of nine
manufacturing facilities in five countries, generating about $750 million in
annual sales, that supply door panels, overhead systems, instrument panels,
cockpits and interior trim to various original equipment manufacturers.

     IAC was formed to acquire the former European interiors operations of
Collins & Aikman Corporation, which was completed on May 31, 2006. The
transaction is consistent with the framework agreement entered into in October
2005 to explore strategic opportunities in the automotive interior components
sector.

     In connection with the ISD Europe transaction, Lear expects to recognize a
loss on sale of approximately $40 million when the transaction is completed,
which is expected to occur in the third quarter.

     The closing of the transactions contemplated by the purchase agreement is
subject to various conditions, including third-party consents and other closing
conditions customary for transactions of this type. In connection with the ISD
Europe transaction, Lear will enter into various ancillary agreements providing
Lear with customary minority shareholder rights and registration rights with
respect to its equity interest in IAC.



                                                                               2


Citigroup Corporate and Investment Banking and UBS Investment Bank acted as
financial advisors to Lear in connection with this transaction.

     Lear Corporation is one of the world's largest suppliers of automotive
interior systems and components. Lear provides complete seat systems, electronic
products and electrical distribution systems and other interior products. With
annual net sales of $17.1 billion, Lear ranks #127 among the Fortune 500. Lear's
world-class products are designed, engineered and manufactured by a diverse team
of 115,000 employees at 282 locations in 34 countries. Lear's headquarters are
in Southfield, Michigan, and Lear is traded on the New York Stock Exchange under
the symbol [LEA]. Further information about Lear is available on the Internet at
http://www.lear.com.

FORWARD-LOOKING STATEMENTS

     This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Actual results may
differ materially from anticipated results as a result of certain risks and
uncertainties, including but not limited to: general economic conditions in the
markets in which the Company operates, including changes in interest rates;
fluctuations in the production of vehicles for which the Company is a supplier;
labor disputes involving the Company or its significant customers or suppliers
or that otherwise affect the Company; the Company's ability to achieve cost
reductions that offset or exceed customer-mandated selling price reductions; the
outcome of customer productivity negotiations; the impact and timing of program
launch costs; the costs and timing of facility closures, business realignment or
similar actions; increases in the Company's warranty or product liability costs;
risks associated with conducting business in foreign countries; competitive
conditions impacting the Company's key customers and suppliers; raw material
costs and availability; the Company's ability to mitigate the significant impact
of recent increases in raw material, energy and commodity costs; the outcome of
legal or regulatory proceedings to which the Company is or may become a party;
unanticipated changes in cash flow, including the Company's ability to align its
vendor payment terms with those of the Company's customers; the finalization of
the Company's restructuring strategy; the outcome of various strategic
alternatives being evaluated with respect to the Company's Interior segment; and
other risks described from time to time in the Company's Securities and Exchange
Commission filings. The completion of the transaction with IAC discussed above
is subject to various conditions, including conditions outside the control of
Lear. In addition, the terms of the transaction are subject to adjustment under
certain conditions. No assurances can be given that the joint venture between
IAC and Lear will be consummated on the terms contemplated or at all.

     The forward-looking statements in this press release are made as of the
date hereof, and the Company does not assume any obligation to update, amend or
clarify them to reflect events, new information or circumstances occurring after
the date hereof.