Company Divests its Wheels Business
SAO PAULO, Aug. 10 /PRNewswire/ -- ArvinMeritor Inc.'s (NYSE: ARM)
Chairman, CEO and President Chip McClure today announced that the company is
committed to remaining a strong and growing manufacturer and supplier in South
America. Addressing a group of South American journalists, he said the company
is focused on becoming a global commercial vehicle company with expanded
leadership in original equipment and aftermarket for both the on- and
off-highway global markets.
(Logo: http://www.newscom.com/cgi-bin/prnh/20010524/ARVINLOGO )
McClure said the company is planning an up to a $10-million [U.S.]
investment for its commercial vehicle business in Brazil, which will support
its expansion into new product segments as well as new manufacturing
technology like advanced gear-making and efficient, high-quality equipment to
make parts and components.
While ArvinMeritor is impacted by unprecedented economic changes, its
production in South America is up nine percent quarter-over-quarter.
"Our growth strategy involves bringing new products and technology to
South America," said McClure. "With a rich 100-year history, we are always
exploring new opportunities that will meet our customers' needs. With the
right products and a dedicated and talented workforce, ArvinMeritor will
continue to be a strong commercial vehicle supplier in Brazil and across the
According to McClure, ArvinMeritor's success in the region can be
attributed to its experienced South American management team: Antonio Rossi,
director - axle operations; Silvio Barros, director - sales and marketing;
Angelo Morino, director - aftermarket; Jose M. Fernandes - director
procurement; and Adalberto Momi, director - finance.
Also acknowledging the contributions of its joint venture companies -
Freios Master and Suspensys - with the Randon Corp., McClure reinforced the
importance of its ongoing collaboration with Randon and its management team.
"ArvinMeritor has renewed its commitment to further strengthening its
customer-focused relationship and business strategy with Randon," he said.
Both joint ventures are based in Caxias do Sul, Brazil.
Wheels Business Divested
ArvinMeritor announced last week that it had entered into an agreement to
sell its Wheels business to Iochpe-Maxion, a Sao Paulo, Brazil-based producer
of wheels and frames for commercial vehicles, railway freight cars and
castings. The sale is expected to close by the end of 2009.
"Iochpe-Maxion approached us about acquiring this asset and we determined
that selling it was in the best interest in terms of ArvinMeritor's strategy
and the Wheels businesses' long-term growth," said McClure. "This new owner
will invest in Wheels and the valuable, talented people who support it.
"The Fumagalli wheel brand has a 60-year heritage and holds significant
meaning for the global customer base," he said. "This transaction supports our
efforts to move our goal of becoming a commercial vehicle company while at the
same time offering Wheels an exciting new future as a strategic core business
in the Iochpe-Maxion portfolio. We are grateful for the significant
contributions the people of this business made to the success of our company.
The White Shirt culture will continue to be recognized as a benchmark for
best-in-class manufacturing initiatives."
The Wheels business operates manufacturing facilities in Limeira, Brazil
and San Luis Potosi, Mexico.
ArvinMeritor's Body Systems business currently continues to be part of its
portfolio. "As part of our transformation strategy to continue to divest our
Light Vehicle Systems businesses, we intend to pursue the sale of our Body
Systems business when market conditions support such actions," said McClure.
For original equipment vehicle manufacturers in South America,
ArvinMeritor manufactures and supplies front steer axles, drive axles (single
and tandem drive), bus axles (low floor and entry platforms), and cab
suspension systems. In collaboration with its joint ventures, Freios Master
and Suspensys, ArvinMeritor supplies drum brakes, hubs, trailer and truck
suspensions and trailer axles. The companies provide aftermarket distributors
with axle parts such as precision axle gear forgings, bearings, oil seals, air
brakes, friction material, brake hardware, kingpin kits, shock absorbers,
trailer axles, suspension systems and wheels.
ArvinMeritor, Inc. is a premier global supplier of a broad range of
integrated systems, modules and components to the motor vehicle industry. The
company marks its centennial anniversary in 2009, celebrating a long history
of 'forward thinking.' ArvinMeritor serves commercial truck, trailer and
specialty original equipment manufacturers and certain aftermarkets, and light
vehicle manufacturers. ArvinMeritor common stock is traded on the New York
Stock Exchange under the ticker symbol ARM. For more information, visit the
company's Web site at arvinmeritor.com.
SOURCE ArvinMeritor, Inc.
/CONTACT: Media: Lin Cummins, +1-248-435-7112,
email@example.com, or Trade Inquiries: D. Michael Pennington,
+1-248-435-1933, firstname.lastname@example.org, both of ArvinMeritor,
/Web Site: http://www.arvinmeritor.com /
CO: ArvinMeritor, Inc.; Iochpe-Maxion
SU: CXP PDT TNM
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5537 08/10/2009 11:42 EDT http://www.prnewswire.com