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Meritor Automotive Holds its Annual Shareowners Meeting

10 February 1999

Meritor Automotive Holds its Annual Shareowners Meeting

       Reports Robust First Year Results and Outlook for Global Growth

    TROY, Mich., Feb. 10 -- Meritor Automotive Inc.
today held its annual shareowners meeting following the completion of its
first year as an independent company.  The meeting was held at the Meritor
World Headquarters in Troy, Michigan.
    At the meeting, shareowners voted to elect Harold A. Poling to the Board
of Directors, with a term expiring in 2002.  The shareowners also approved the
selection of Deloitte & Touche, LLP as the company's auditors.
    Meritor Chairman and Chief Executive Officer, Larry D. Yost, provided an
overview of the company's financial performance, perspective on the global
automotive environment, and status of the company's global growth initiatives.
Yost reinforced the strategic value of the company's recent acquisitions of
Volvo's heavy truck axle manufacturing operations, Euclid Industries
aftermarket business and LucasVarity's Heavy Vehicle Braking Systems business.
Yost said, "The traditions of excellence and innovation that defined us over
the last 100 years, also serve us well as we position the company for the
future."
    Yost added, "Meritor's 1998 performance is a product of the hard work and
dedication by our worldwide team, a demonstration of our ability to stand on
our own as a global leader in the competitive automotive industry."
    The company's fiscal 1998 sales totaled $3.8 billion, a 16 percent
increase over 1997 as both of Meritor's businesses achieved record sales in
1998, for the second consecutive year.  Heavy Vehicle Systems sales increased
by 21 percent to $2.4 billion, accounting for 61 percent of total sales and
Light Vehicle Systems, which makes up 39 percent of sales, rose 9 percent to
$1.5 billion.
    Following its fiscal 1998 performance, Meritor posted a 1999 first quarter
earnings per share gain of 23 percent on sales growth of 4 percent, as
compared to 1998 first quarter results.  Sales for the first quarter of $944
million, an increase of $33 million over the same period last year, generated
operating earnings of $69 million compared to $63 million last year, an
increase of 10 percent.  Net income was $40 million, or 58 cents per share,
compared to $32 million, or 47 cents per share last year.
    Meritor, with 1998 sales of more than $3.8 billion, is a global supplier
of a broad range of components and systems for commercial, specialty and light
vehicle OEMs and the aftermarket.  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,
suspension and seat adjusting systems and wheels for passenger cars, light
trucks and sport utility vehicles.
    This news release contains statements relating to future results that are
"forward-looking statements" as defined in the Private Securities Litigation
Reform Act of 1995.  Actual results may differ materially from those projected
as a result of certain risks and uncertainties, including but not limited to
those detailed from time to time in the Company's Securities and Exchange
Commission filings.

    Bio of Harold A. Poling
    Retired Chairman of the Board and Chief Executive Officer, Ford Motor
Company, Age 73

    Mr. Poling, a director since September 1997, is a member of the Board of
Composition Committee and Chairman of the Compensation and Management
Development Committee.  He is an investor in Metapoint Partners, an investment
partnership.  He retired as Chairman of the Board and Chief Executive Officer
of Ford Motor Company in January 1994, having joined Ford in 1951 and served
in a number of senior management positions prior to becoming President (in
1975) and Chairman (in 1977) of Ford in Europe.  Mr. Poling became President
and Chief Operating Officer of Ford in February 1985 and served as Chairman of
the Board and Chief Executive Officer from March 1990 to January 1994.  He is
a director of Karrington Health, Inc., Kellogg Company, LTV Corporation and
Shell Oil Company.  He is also a director, trustee or member of a number of
business, educational and civic organizations.