I know the dealer makes fitted seat covers in some cloth/denim fabrick...I think, But im sure there is a place, Possibly the dealer again to get some new leather.
Good luck
The same is on my 95 driver seat. The stitching on the pleat right under the butt is whats tearing. I took it in 1 year ago to get it re-stitched and paid $250 CDN for the job. The stitches tore out 3 mos later. I took it in again, they repaired it under warranty. Stictches tore 3 mos later. I took it in just last week for warranty and they did it again under warranty, though the guy is now blaming the leather b/c its shrunk and tearing the stiches. He said to go a leather upholsterer and they'd replace the leather for around $300 (P and L). This is definatlely the route I'd go. I wish I did this in the first place.
When I had mine repaired they said to clean off the leather conditioner, & then put baby oil on them this will soak in making then pliable. I t took several times untill it they wouldn't soak any more up.
Mine were like a sponge.
My seats are shot -- I got them that way though. The PO was pretty hard on the leather in mine. I don't think I helped much though
I know several people have used Leatherique with very good results. I saw the end result of a Leatherique reconditioning and was very impressed.
That said, I think I'll save the Leatherique process for the wife's 80 and will just cover mine with an aftermarket cover. Many have ordered covers from Great Covers -- their site is www.gtcovers.com (they have another website, but it's not as user-friendly as this one). Some have gone with Wet Okole covers -- they're neoprene. I'm considering a neoprene cover, from Costco's online site.
For more info on Leatherique, search the archives with "leatherique" as the keyword.