ArvinMeritor Will Reduce Workforce to Strengthen Competitive Position

ARVINMERITOR LOGO
ArvinMeritor logo. (PRNewsFoto)[AG]
TROY, MI USA 05/24/2001
    TROY, Mich., Jan. 21 /PRNewswire-FirstCall/ --
ArvinMeritor, Inc. today announced it would reduce its global
Light Vehicle Systems (LVS) workforce by approximately 300 salaried employees.
LVS will also close its Apertures facility in Gordonsville, Tenn., affecting
an additional 275 hourly employees.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/20010524/ARVINLOGO )
    The cost-cutting measures follow the recent consolidation of
ArvinMeritor's LVS businesses and are designed to proactively address
competitive challenges in the automotive supplier industry, as well as market
and economic conditions.
    "Our industry faces significant challenges, including overcapacity, rising
employee health care costs, increasing steel costs, and weak North American
and European economies," said LVS President Craig Stinson.  "In addressing
these and other issues, we must identify and focus our efforts on streamlining
business processes and reducing costs across the organization.  These are
difficult decisions to make, but absolutely necessary if ArvinMeritor is to
maintain its competitive edge over the long term.  These actions will take
place without any interruption in service to our customers."
    Salaried employee reductions will begin immediately and run through late
summer 2003.  The closure of the Gordonsville facility will be completed by
August 2003.  The company will offer necessary counseling and support services
to assist employees in successfully transitioning to new opportunities.
    The LVS Gordonsville facility is a producer of window regulators and
sunroof systems for the North American passenger car market.  Operations based
in Gordonsville will be transferred to ArvinMeritor locations in Detroit,
Mich., Marion, S.C., Franklin, Ind., and Queretaro, Mexico.
    ArvinMeritor's Light Vehicle Systems, which employs 16,000 people
worldwide, is a leading supplier of air and emissions technologies, aperture
and undercarriage systems for the global passenger car market.  In July 2002,
ArvinMeritor consolidated its light vehicle business groups into one
organization to more closely align operations with customer needs, as well as
to maximize manufacturing and business process synergies within LVS.
    ArvinMeritor, Inc. is a premier $7-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 aftermarkets.  In
addition, ArvinMeritor is a leader in coil coating applications.  The company
is headquartered in Troy, Mich., and employs 32,000 people at more than 150
manufacturing facilities in 27 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 .