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Meritor and Streparava Join Forces

1 September 1998

Meritor and Streparava Join Forces To Offer Independent Suspensions Worldwide

    HANNOVER, Germany, Sept. 1 -- Meritor Automotive, Inc.
has announced a joint collaborative agreement with Streparava
S.p.A. Adro, Brescia, Italy to develop independent front suspensions (IFS) for
bus, coach and motor home customers worldwide.  The companies will develop
independent suspensions with front gross axle weight ratings (GAWR) from 7,000
pounds (3.2 t) to 18,000 pounds (8.2 t).
    Streparava is one of the largest independent European manufacturers of
independent front axle suspensions for light trucks, buses and motor homes.
The company also manufactures a wide range of components for suspension,
steering axle, transmission, clutch and engine parts.
    Meritor will be primarily responsible for the global sales and marketing
of the IFS system, interfacing with OEM customers and providing service and
aftermarket support.  Streparava will be primarily responsible for design and
work closely with customers in conjunction with Meritor, while maintaining
marketing responsibilities for pre-existing customer contracts.  Under the
terms of the agreement, the companies will agree upon an appropriate division
of the manufacturing and production responsibilities.
    According to Glen Swanson, bus and coach product manager for Meritor's
Worldwide Axle business, a definite trend exists toward more use of
independent suspensions in the transportation market.  "About one-quarter of
the coach market in North America currently uses independent suspension
systems while virtually all of the European market uses independent systems.
The motor home segment has not been a strong user of independent suspensions
in the past, but we anticipate it to increase as customers demand a more
comfortable ride and better vehicle handling," noted Swanson.
    "The agreement with Streparava allows us to meet market demands with a
proven independent front suspension and further extend our drivetrain offering
to the bus, coach and motorhome markets around the world."
    Guido Longoni, manager of international operations for Streparava S.p.A.,
emphasized that the agreement is a good fit for both companies.  "Streparava
has a strong product that has been in field operation for more than 30 years
and Meritor has the marketing and added manufacturing capabilities to support
it on a global basis.  Drawing on the strengths of both companies allows us to
offer a quality product to customers around the world, whether they are in
North America, Europe, Brazil, China, South Africa, Japan, Malaysia,
Australia, or anywhere else."
    Meritor, with 1997 sales of $3.3 billion, is a global supplier of a broad
range of components and systems for commercial, specialty and light vehicles.
Meritor consists of two businesses:  Heavy Vehicle Systems, a leading supplier
of drivetrain systems and components for medium- and heavy-duty trucks,
trailers and off-highway equipment and specialty vehicles including military,
bus and coach, and fire and rescue; and Light Vehicle Systems, a major
supplier of roof, door, access control and seat adjusting systems, electric
motors, suspension systems and wheels for passenger cars, light trucks and
sport utility vehicles.