ArvinMeritor to Consolidate North American Shock Absorber Operations
Closures are Included in 13-Plant Restructuring Plan
TROY, Mich., Sept. 7 -- ArvinMeritor, Inc. today announced it's consolidating its three North American ride control facilities into one, including the closure of its Toronto, Ontario original equipment shock absorber operation, and its Chickasha, Oklahoma packaging and distribution center. The 700-person closure is part of a previously announced restructuring plan affecting 2,800 employees from 13 North American and European plants.
"The company must operate from a global manufacturing footprint that optimizes capacity and reduces costs, while creating the highest levels of service and value for our customers," said Ed Frutig, vice president and general manager, Chassis Systems. "Our site closures are in no way a reflection of our dedicated workforce. Our talented and highly-skilled employees have consistently delivered quality products for our customers."
A majority of the shock absorber production will be transferred from Toronto to Queretaro, Mexico by June 2008, with an anticipated closure by June 2009. The Chickasha site will move its packaging and distribution business to a U.S.-based third party logistics company by April 2008. Employees were advised of the closure plans today during a series of meetings. ArvinMeritor will offer severance and benefits packages to affected employees.
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; potential 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.
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