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Meritor Automotive and Freightliner Expand Alliance

18 September 1998

Meritor Automotive and Freightliner Expand Alliance; Meritor Products Standard on Select Freightliner and Sterling Trucks

    TROY, Mich., Sept. 18 -- Meritor Automotive, Inc.
and Freightliner Corp. today announced that they have entered into a multi-
year drivetrain supply agreement that will further expand the collaborative
alliance of the two companies.
    Under the terms of the agreement, Meritor products -- already standard on
the popular Freightliner Century Class truck line -- will become standard on
additional models including the FL106 and FL112 tractors, Argosy cabover
engine tractor, Business Class medium-duty trucks, the new Sterling line of
Class 8 vehicles, American La France fire apparatus, and custom chassis made
by Freightliner.
    The agreement will expand Meritor's OEM databook position with
Freightliner to include front steer and rear drive axles, air brakes,
automatic slack adjusters, clutches, transmissions, anti-locking braking
systems, on-board diagnostic computing systems and aftermarket parts.
    Meritor Chairman and Chief Executive Officer Larry D. Yost said, "We are
extremely pleased that Freightliner has once again selected Meritor as its
standard drivetrain supplier."
    "We're particularly proud that Freightliner thoroughly evaluated Meritor's
technology, quality, service and value compared to our competitors, and
concluded that Meritor was their supplier of choice," Yost added.
    Freightliner Chairman Jim Hebe said, "As Freightliner continues its growth
initiatives, Meritor will continue to play a significant role in our success.
The engineering and manufacturing capabilities, and collaborative service that
Meritor provides Freightliner will help strengthen our growing heavy truck
market leadership position."
    This agreement marks significant business gains for some of Meritor's
newest axle, transmission, clutch and ABS products.  Prakash R. Mulchandani,
president of Meritor's Heavy Vehicle Systems business, said, "The choice by
Freightliner Corporation to designate these products as standard equipment
further underscores the industry's acceptance of Meritor's latest
technological innovations."
    Meritor, with 1997 sales of more than $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 and electronic controls, suspension systems and
wheels for passenger cars, light trucks and sport utility vehicles.
    Freightliner Corporation, headquartered in Portland, Oregon, is the
leading heavy truck manufacturer in North America.  Freightliner produces and
markets Class 3-8 trucks and is a member of the Daimler-Benz AG
group, the world's largest commercial vehicle manufacturer
(http://www.freightliner.com).