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Meritor Automotive Expands Wheel Manufacturing Facility in Mexico

7 March 2000

Meritor Automotive Expands Wheel Manufacturing Facility in Mexico

    SAN LUIS POTOSI, Mexico, March 7 Meritor Automotive Inc.,
has announced the expansion of its wheel assembly plant in San
Luis Potosi, Mexico.  The expansion will support Meritor Automotive's Light
Vehicle Systems (LVS) growing automotive markets in the Americas, especially
Mexico.
    The current facility has 95,000 square feet of production and employs
95 people.  When the expansion is complete the plant will employ over
150 people on three shifts.  The new facility will allow for the production of
larger, heavier, and full-face wheels and include a stamping line, rim line,
machine cells for both discs and rims, and a wheel assembly area.
    "This expansion strongly illustrates a commitment to our customers and to
our operation at San Luis Potosi," said Sidney Del Gaudio, general manager,
LVS Wheels.  "First, it is continuing evidence that Meritor is determined that
its markets in the Americas will continue to prosper.  And second, it
demonstrates our growing presence in Mexico and our long-term strategy to
build partnerships with OEMs at their manufacturing sites around the world."
    Current customer demand mandated that the Mexico plant be renovated for
higher production.  After construction is complete, we expect for capacity to
reach two million wheels per year for light trucks and SUV's.  The plant's
current major OEM contract is with Daimler Chrysler.  San Luis Potosi
currently supplies full-face cladded steel wheels for the new Dodge Ram and
other customers.
    The full-face cladded wheels provide more styling flexibility and
high-style bright appearance compared to base wheels, but offer significant
cost-savings compared to traditional chrome steel or aluminum wheels.  Plant
and equipment design permits the production of a wide range of wheels,
including drop center base and spare wheels, bead-seat and full-face design,
fully cladded wheels, and fabrication in aluminum if further weight reduction
is needed.
    Meritor's Wheels business is one of five business units of the company's
Light Vehicle Systems Division.  The Wheels business has the capacity to
produce more than 16 million wheels annually.  Meritor's strategy is to be the
leading supplier of vehicle aperture and undercarriage components for
passenger cars and light trucks.  Aperture systems include industry leading
development and production of roof systems and door modules, undercarriage
components consist of wheels and suspension systems.
    Meritor concentrates its wheel manufacturing in two plants, one in
Limerira, Brazil and the other in San Luis Potosi.  The Limerira plant employs
1,012 people, 422 of which who have been with Meritor for more than 10 years.
In 1997, the facility was named "Best Place to Work in Sao Paulo."  With an
overage score of less than 10 ppm, the plants consistently rank at the top in
overall quality when scored against all automotive supplier plants worldwide.
The San Luis Potosi Plant recently received the San Luis Potosi State Quality
Award for 1999.

    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 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.