Meritor Opens its First Wholly-Owned Mexican Heavy Vehicle Systems Assembly Plant
16 February 2000
Meritor Automotive Opens its First Wholly-Owned Mexican Heavy Vehicle Systems Assembly Plant
QUERETARO, Mexico, Feb. 15 -- Meritor Automotive, Inc.
, one of the world's leading suppliers of components and systems to
automotive original equipment manufacturers (OEMs), today inaugurated its
first wholly-owned Mexican Heavy Vehicle Systems assembly plant. The plant is
dedicated to supplying Mexico-based commercial truck OEM customers with
heavy-duty components and systems, initially drive axles and drivelines.
The new Meritor Heavy Vehicle Systems (HVS) Mexico S. A. de C.V. plant is
the second plant for Meritor in Queretaro and its fourth plant in Mexico.
The company is among the leading suppliers to the Mexican automotive industry,
and it currently employs more than 1,800 people in the country.
Representing an initial capital investment of more than $3 million (USD),
the 120,000-sq. ft. plant presently employs 40 people and the number of
employees could increase depending on business volumes, according to plant
manager Jose Felipe Pelaez, a 15-year Meritor employee and manufacturing,
engineering and operations veteran.
Ignacio Loyola Vera, the Governor of Queretaro, and Armando Rivera
Castillejos, the Sustainable Development Minister of the State, joined Prakash
Mulchandani, president of Meritor's HVS business, and senior vice president of
Meritor Automotive, to officially dedicate the new plant in ceremonies held
today.
In his address to the plant's employees, Meritor customers, news media
members and guests, the Governor of Queretaro praised the company's dedication
to economic growth and social development in Queretaro, and for fulfilling its
stated commitment to support its Mexican automotive and truck customers with
local production capacity.
Meritor's HVS President Prakash Mulchandani said, "Today, Mexico is among
the world's leading growth markets for heavy trucks and components, and as a
premier supplier, we are pleased to participate in its expansion by increasing
our capabilities to better serve our customers. Our new plant illustrates
that our valued business with Mexico's heavy vehicle OEMs makes it possible
for us to invest in Mexican plants and in talented people, resulting in
increased domestic content and domestic employment. We're dedicated to
remaining in Mexico, continuing to work for our customers."
According to Pelaez, the Queretaro plant provides local customers with
just-in-time delivery and enhanced service, while its production flexibility
enables the company to respond quickly to OEM customer requests, resulting
from ratio modifications, line-sequence revisions and other last-minute
changes.
The new plant has the capability to expand its production to include other
medium- and heavy-duty truck components, including front steer axles, trailer
axles, foundation brakes and complete braking systems, in addition to other
components. If additional products are added in the plant, the plant's
employment level could grow significantly within the next two years.
Also active in the Mexican truck market is Meritor's Aftermarket business
which supplies Mexican truck operators via two master distributors who stock
genuine Meritor products and are presently serving end-user truck operators.
These parts also are available from OE truck dealers. With dedicated local
resources to serve the Mexican truck and trailer builders, in addition to
serving the authorized parts outlets and fleet customers, the company
continues to market genuine Meritor products and continues to provide
customers with complete sales and technical support.
In addition to the new Queretaro HVS plant, Meritor has three Light
Vehicle Systems' production facilities in Mexico serving passenger car and
light truck makers:
* Meritor Mexicana S.A. de C.V., also in Queretaro, produces window
regulators and sunroofs, including sunroofs for Volkswagen Golf and Jetta
models, GM and Nissan.
* Meritor Light Vehicle Systems S.A. de C.V. plant in San Luis Potosi,
supplies steel wheels to Chrysler, Volkswagen de Mexico and General Motors;
and
* Meritor Mexicana S.A. de C.V. Door Systems plant in Puebla, produces
door modules.
Meritor also continues its joint venture operation with Dirona S.A. in
Monterrey, Nuevo Leon, Mexico, producing axles and foundation brakes for
heavy-duty trucks.
Meritor, with 1999 sales of $4.5 billion, is a global supplier of a broad
range of systems and components for commercial, specialty and light vehicle
OEMs and the aftermarket. Meritor consists of two businesses: Heavy Vehicle
Systems, a leading supplier of complete 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
suspension systems and wheel products 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.