21st
March 2005 - ArvinMeritor CEO, Chip
McClure, Named World Trader of the Year
Promotes Free Trade to
Boost Global Economy
Global corporations must
continue to push for free trade around the world as the best way to help propel
continued economic growth, Charles G. "Chip" McClure, chairman, CEO and
president of ArvinMeritor, Inc., said in a speech delivered Friday to the
Detroit Regional Chamber.
The Chamber honored McClure as
its World Trader of the Year at its International Consular Ball. The award is
given annually to recognize an individual or company that has demonstrated
exceptional involvement and made significant contributions in the promotion of
international trade with Southeast Michigan.
"As Michigan and the U.S.
economies continue to gain momentum toward recovery, it has never been more
important to embrace a dynamic global economy and global trade," said McClure.
"It's good business for everyone -- both at home and abroad.
"Ninety-five percent of the
world's population -- and 80 percent of the world's economy -- is outside U.S.
borders," McClure continued, in his Friday night speech. "Competing in overseas
markets fuels economic growth and job creation at home."
John Carroll Jr., senior vice
president of business development at the Detroit Regional Chamber said, "ArvinMeritor
is committed to being a major competitor in the world market, but is equally
committed to Detroit and the region."
ArvinMeritor is focusing on
global expansion. It recently opened a new facility in Poland, for example. In
Asia, ArvinMeritor has 24 facilities, in seven countries, with approximately
2,100 employees. McClure said he had visited more than 35 of ArvinMeritor's
locations in his first seven months since assuming the helm of ArvinMeritor.
Also noted by McClure was the
opening last year of ArvinMeritor's new Detroit Technical Center and
manufacturing facility in southwest Detroit, which now has more than 500
employees. He underscored the company's close collaboration with Southwestern
High School in Detroit through mentoring, co-op programs and other efforts.
During his speech, McClure
touched on a number of relevant topics:
| • |
The boom in emerging markets.
"Established markets will represent only six to 11 percent of production
growth in the next five years. Emerging markets are growing seven times
faster than North America. Emerging markets are predicted to grow 59
percent over the next five years: China by 93 percent, India by 40 percent,
Thailand by 48 percent, Mexico by 37 percent - and Iran by 62 percent." |
| • |
The rise of the China market.
"Our company has been in China since the mid-1980s. Anyone who has been to
China has seen the exciting growth in the region. Light-vehicle sales have
doubled since 2002. Heavy-vehicle sales have almost tripled since 2002." |
| • |
The company's U.S. presence.
"Currently, just over 50 percent of our sales is still in the United States,
and I fully expect to continue to have a strong presence in the United
States. However, we must be competitive on a global basis." |
| • |
The importance of the new
Northwest Airlines terminal at Detroit Metropolitan Airport. "We now have a
world-class airport. We're able to travel anywhere in the world. It's a
critical part of the infrastructure required for a community to complete in
a global economy. Oftentimes, it's the first impression for someone arriving
from overseas." |
| • |
The harm in steel-trade
barriers. "Global trade ... also means fundamental fair trade -
specifically as it relates to trade barriers and trade protection that
benefits one industry to the disadvantage of another. Many of us are
currently experiencing this locally as a result of the recent trade
protections that have supported the U.S. steel industry. This action caused
our industry to deal with availability issues as well as severe cost
increases. The result has had a huge impact on our industry, which in turn
affects the national economy, causing it to be far less robust than it would
be otherwise." |
| • |
His support of fair trade. "We
acknowledge and support the efforts of Congressman Joe Knollenberg in
calling on the International Trade Commission - as part of their five-year
sunset reviews of anti-dumping or countervailing duties on steel products --
to use their authority to take into account the impact of those duties on
steel-consuming manufacturers and the overall economy." |
| • |
What the tsunami disaster
illustrated. "Today, international free trade strengthens the common thread
that binds us and promotes a global sense of community, not just
economically but also socially. Most recently, that was demonstrated by the
world response to the tsunami tragedy. The magnitude of the disaster was
unparalleled, but also the magnitude of support from around the world has
not before been seen. It truly redefined the meaning of a 'global sense of
community.'" |
| • |
The road ahead. "We'll never
return to the isolationism of the past. Working in a global community is
essential both socially and economically. The last 50 years has seen an
unprecedented economic prosperity throughout the world. The next 50 years
provides the opportunity for even more growth, and probably at an even
faster pace." |
ArvinMeritor, Inc. is a premier
$8 billion global supplier of a broad range of integrated systems, modules and
components to the motor vehicle industry. The company serves light vehicle,
commercial truck, trailer and specialty original equipment manufacturers and
related after-markets. Headquartered in Troy, Mich., ArvinMeritor employs
approximately 31,000 people at more than 120 manufacturing facilities in 25
countries. 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: www.arvinmeritor.com
Source: ArvinMeritor Press Release