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26th June 2009 - ArvinMeritor Divests Ownership Stakes in Two Light Vehicle Systems Chassis Businesses

ArvinMeritor, Inc. has announced that it has reached agreements to divest its entire ownership stakes in two joint ventures in its light vehicle Chassis business.  Together, these transactions will result in the divestiture of 45 percent of the Chassis Systems business (as measured by 2008 sales).

The company entered into a binding letter of intent to sell its 57 percent stake in Meritor Suspension Systems Company (“MSSC”), a joint venture that manufactures and sells automotive coil springs, torsion bars and stabilizer bars in North America, to its joint venture partner, a subsidiary of Mitsubishi Steel Mfg. Co., LTD (MSM).  The transaction is expected to close in the coming months, after receiving necessary regulatory clearances.

ArvinMeritor also announced that, earlier this month, it completed the sale of its 51 percent stake in Gabriel de Venezuela, which manufactures shock absorbers, struts, exhaust systems and suspension modules for countries including Venezuela, Colombia, Chile, Bolivia, Peru and Ecuador. 

“We are pleased to announce these two divestitures, which represent important steps toward achieving our long-term strategic objective to focus on supplying the commercial vehicle on- and off-highway markets for both original equipment manufacturers and aftermarket customers,” said Chip McClure, chairman, CEO and president.  “Our joint venture partners are strong companies and I am confident that they will focus on growing these businesses. We continue to concentrate on divesting the light vehicle Chassis business, and we are pleased with the high level of interest we are continuing to see from potential buyers in the remaining segments of that business.”

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.' The company 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

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