|
11th
August 2009 - ArvinMeritor to
Invest in Brazil Operations, Focus on On- and Off-Highway Markets
| Company Divests its
Wheels Business |
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ArvinMeritor’s 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.
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 continent."
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.
Body Systems
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.
South America
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.
About
ArvinMeritor
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.
Source: ArvinMeritor Press Release |