ArvinMeritor Enters Two Axle Joint Ventures with Volvo
Continues Expansion of Global Manufacturing Presence with Key Global Vehicle Maker
TROY, Mich., Sept. 15 -- ArvinMeritor, Inc. has announced the formation of two joint ventures with the Volvo Group. The joint ventures expand ArvinMeritor's capacity to produce commercial vehicle drive axles. The formation has been approved by both companies' boards and is pending normal governmental approvals.
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Volvo is one of the world's largest truck manufacturers and is based in Goteborg, Sweden. The new arrangement would result in the manufacture and distribution of more than 200,000 axles annually, from an axle manufacturing plant and a foundry located in France.
With this action, ArvinMeritor now becomes one of Volvo's largest global suppliers, providing more than 300,000 axles for commercial truck applications in North America, Europe, Australia, Brazil and India.
The memorandum of understanding, which guided the formation of the joint ventures, was announced late last year.
"This is truly a win-win-win business arrangement: A win for end-user customers, a win for the Volvo Group and a win for ArvinMeritor and its shareowners. Our long-term supply agreement with Volvo is being renewed and expanded," stated Brad Arnold, vice president and general manager of ArvinMeritor's Commercial Vehicle Systems axle business.
A portion of non-drive axles currently made at Volvo's Koping, Sweden, facility, would be shifted to production at ArvinMeritor's Lindesberg, Sweden, facility and to the St. Priest, France joint venture.
Volvo views the new ventures as another step in its strategic alignment with ArvinMeritor for axle supply. In late 1998, ArvinMeritor acquired Volvo's commercial axle manufacturing facility in Lindesberg, Sweden. As part of that transaction, ArvinMeritor entered a long-term supply agreement with Volvo for heavy-duty drive axles, which has now been expanded.
"We have realized the value of ArvinMeritor's commitment to advanced axle engineering and manufacturing," stated Lars-Goran Moberg, CEO for Volvo Powertrain, which is responsible for the manufacturing of Volvo powertrain components within the Volvo Group. "Our confidence has grown in ArvinMeritor's ability to serve our global customer base."
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 aftermarkets. Headquartered in Troy, Mich., ArvinMeritor employs approximately 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/ .
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