Meritor Automotive Awarded Michigan Mega Grant
6 December 1999
Meritor Automotive Awarded Michigan Mega Grant; To Relocate Roof Systems Manufacturing to Detroit
TROY, Mich., Dec. 3 -- Meritor Automotive, Inc.
today demonstrated its support for Detroit's continued economic revitalization
by announcing that it intends to relocate its Light Vehicle Systems (LVS) Roof
Systems manufacturing operations in Brighton, Mich., to a new plant it will
begin building next year in southwest Detroit.
Earlier today, the Michigan Economic Growth Authority (MEGA) announced the
approval of a tax credit for Meritor worth more than $3.2 million over 18
years. The tax credit was central to the company's ability to establish its
new operations within the Detroit Renaissance Zone subzone located along Fort
Street in Detroit.
"Meritor truly appreciates the assistance from the State of Michigan and
the City of Detroit that makes it possible for us to keep our Roof Systems
manufacturing operations in Michigan," said Meritor Senior Vice President and
President Light Vehicle Systems, Terry O'Rourke. "We are pleased to join the
growing list of corporations supporting the City of Detroit's economic
expansion."
Meritor Automotive had outgrown the capacity of its LVS Roof Systems plant
in Brighton, Mich., which manufactures sunroofs and roof components for North
American light vehicle manufacturers, including BMW, DaimlerChrysler, Ford,
General Motors and Nissan.
The planned 150,000 sq. ft. facility in Detroit initially will employ more
than 200 people, and will enable the company to consolidate in one structure
the operations currently split between two buildings at the Brighton plant.
The new location provides the company's growing Roof Systems business with
much-needed space for future expansion as well as access to the Detroit area's
pool of skilled automotive workers. Current Meritor employees at the Brighton
facilities will be offered continued employment opportunities at the new
location.
Meritor expects to break ground for the new plant in the spring of 2000.
The company will first clear the 10-acre site of the existing vacant buildings
before it begins construction of the new plant. The facility is expected to
begin operations approximately a year later.
"The expansion of Meritor to the Renaissance Zone is a win-win situation
for the company and the community," stated Doug Rothwell, President and CEO of
the Michigan Economic Development Corporation. "Meritor's investment in the
community and the jobs Meritor will bring will have a positive impact on
Detroit and Michigan."
"I am extremely pleased that a corporation of Meritor Automotive's caliber
has chosen to relocate a manufacturing plant into the City of Detroit," said
Detroit Mayor Dennis W. Archer. "We look forward to the opportunities that
will be created as a result of their move into our city."
Michigan's Renaissance Zones have created 126 projects, 3,612 jobs and
more than $315 million in private investment.
Meritor, with 1999 sales of $4.5 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: Light Vehicle
Systems, a major supplier of roof, door, access control and suspension systems
and wheel products for passenger cars, light trucks and sport utility
vehicles; and 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.
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. Actual results may differ materially from those projected as a
result of various risks and uncertainties, including but not limited to global
economic and market conditions; the demand for commercial, specialty and light
vehicles for which the company supplies products; risks inherent in operating
abroad; 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 customers and suppliers;
and competitive product and pricing pressures, as well as other risks and
uncertainties, including but not limited to those detailed from time to time
in the company's Securities and Exchange Commission filings. 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.