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Meritor Creates Automotive Body Systems Business Unit

26 March 1999

Meritor Creates Automotive Body Systems Business Unit

              Leveraging Strength of its Door Systems Business,
              Meritor Takes Advantage of Modular Assembly Trend

    TROY, Mich., March 25 -- Meritor Automotive, Inc.
today announced the creation of an Automotive Body Systems business unit
within its Light Vehicle Systems (LVS) business.  The new unit is dedicated to
the development and sale of complete body modules and will initially focus on
providing complete door modules for passenger cars and sport utility vehicles.
Kenneth W. Schang, who most recently served as director of Commercial
Marketing for Meritor's LVS business, has been appointed general manager of
the unit, effective immediately.
    "The creation of the Automotive Body Systems unit reflects Meritor's
dedication to growing its position as a module supplier.  Leveraging the
strength of our existing Door Systems and Access Controls businesses, we are
well positioned to capitalize on the growing OEM demand for complete door
module systems," said Terry O'Rourke, president of Meritor's LVS business.
    "Ken Schang's extensive industry experience and customer knowledge will
allow Meritor to pursue additional opportunities to provide added capabilities
and value to our OEM customers and to maximize the tremendous potential of the
modular systems business," O'Rourke added.
    In describing the new business' benefits, Schang emphasized: "In addition
to addressing a worldwide trend toward modular assembly of light vehicles, the
Automotive Body Systems business will provide Meritor's Door Systems and
Access Control Systems businesses the opportunity to focus more intensely on
the development of next-generation products for our global OEM customers."
    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 seating adjustment systems and wheels for passenger cars, light
trucks and sport utility vehicles.