7th
November 2007 - ArvinMeritor
to Close Axle Operation in Arden, North Carolina
Closure is Part
of Previously Announced Restructuring Initiative
ArvinMeritor announced
today it would close its Commercial Vehicle Systems (CVS) axle operation
in Arden, N.C. by September 2008.
The closure is part of
previously announced restructuring actions in North America and Europe
which the company expects to affect 13 plants and 2,800 employees,
resulting in an estimated annual run rate savings of $130-$140 million
by 2012.
Operations based in Arden will be
transferred to the company's facility in Forest City, N.C. and to a
newly announced plant in Monterrey, Mexico. The company intends to begin
transferring work in February 2008.
Fifty-six employees at the Arden facility
were advised of the closure today. Arden employees will transfer to the
Fletcher, N.C. facility.
Wayne Watson, general manager,
Operations, North America, said, "ArvinMeritor is taking action to
optimize its global manufacturing footprint which will enable us to
better serve our customers while reducing our cost structure."
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 serves light vehicle,
commercial truck, trailer and specialty original equipment manufacturers
and certain aftermarkets. Headquartered in Troy, Mich., ArvinMeritor
employs approximately 19,000 people 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:
http://www.arvinmeritor.com/.
Forward-Looking Statements
This press release contains statements
relating to future results of the company (including certain projections
and business trends) that are "forward-looking statements" as defined in
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are typically identified by words or phrases such as
"believe," "expect," "anticipate," "estimate," "should," "are likely to
be," "will" and similar expressions. Actual results may differ
materially from those projected as a result of certain risks and
uncertainties, including but not limited to global economic and market
cycles and conditions; the demand for commercial, specialty and light
vehicles for which the company supplies products; risks inherent in
operating abroad (including foreign currency exchange rates and
potential disruption of production and supply due to terrorist attacks
or acts of aggression); availability and cost of raw materials,
including steel; OEM program delays; demand for and market acceptance of
new and existing products; successful development of new products;
reliance on major OEM customers; labor relations of the company, its
suppliers and customers, including potential disruptions in supply of
parts to our facilities or demand for our products due to work
stoppages; the financial condition of the company's suppliers and
customers, including potential bankruptcies; possible adverse effects of
any future suspension of normal trade credit terms by our suppliers;
potential difficulties competing with companies that have avoided their
existing contracts in bankruptcy and reorganization proceedings;
successful integration of acquired or merged businesses; the ability to
achieve the expected annual savings and synergies from past and future
business combinations and the ability to achieve the expected benefits
of restructuring actions; success and timing of potential divestitures;
impairment of long-lived assets, including goodwill; competitive product
and pricing pressures; the amount of the company's debt; the ability of
the company to continue to comply with covenants in its financing
agreements; the ability of the company to access capital markets; credit
ratings of the company's debt; the outcome of existing and any future
legal proceedings, including any litigation with respect to
environmental or asbestos-related matters; rising costs of pension and
other post-retirement benefits and possible changes in pension and other
accounting rules; as well as other risks and uncertainties, including
but not limited to those detailed from time to time in filings of the
company with the SEC. These forward-looking statements are made only as
of the date hereof, and the company undertakes no obligation to update
or revise the forward-looking statements, whether as a result of new
information, future events or otherwise, except as otherwise required by
law.
Source: ArvinMeritor Press
Release