ArvinMeritor Inc.'s (NYSE: ARM) Chairman, CEO and President Chip McClure today announced that the company is committed to remaining a strong and growing manufacturer and supplier in South America. Addressing a group of South American journalists, he said the company is focused on becoming a global commercial vehicle company with expanded leadership in original equipment and aftermarket for both the on- and off-highway global markets.
McClure said the company is planning an up to a $10-million investment for its commercial vehicle business in Brazil, which will support its expansion into new product segments as well as new manufacturing technology like advanced gear-making and efficient, high-quality equipment to make parts and components.
While ArvinMeritor is impacted by unprecedented economic changes, its production in South America is up nine percent quarter-over-quarter.
"Our growth strategy involves bringing new products and technology to South America," said McClure. "With a rich 100-year history, we are always exploring new opportunities that will meet our customers' needs. With the right products and a dedicated and talented workforce, ArvinMeritor will continue to be a strong commercial vehicle supplier in Brazil and across the continent."
Also acknowledging the contributions of its joint venture companies - Freios Master and Suspensys - with the Randon Corp., McClure reinforced the importance of its ongoing collaboration with Randon and its management team.
"ArvinMeritor has renewed its commitment to further strengthening its customer-focused relationship and business strategy with Randon," he said. Both joint ventures are based in Caxias do Sul, Brazil.
ArvinMeritor announced last week that it had entered into an agreement to sell its Wheels business to Iochpe-Maxion, a Sao Paulo, Brazil-based producer of wheels and frames for commercial vehicles, railway freight cars and castings. The sale is expected to close by the end of 2009.