Chip McClure, ArvinMeritor Inc's chairman, chief executive officer, and president, announced that the company is planning an up to a $10 million (US) 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, quality equipment to make parts and components.
While ArvinMeritor is impacted by unprecedented economic changes, its production in South America is up 9% quarter-over-quarter.
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. Both joint ventures are based in Caxias do Sul, Brazil.
ArvinMeritor announced recently 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.
The Wheels business operates manufacturing facilities in Limeira, Brazil; and San Luis Potosi, Mexico.
ArvinMeritor's Body Systems business continues to be part of its portfolio. “As part of our transformation strategy to continue to divest our Light Vehicle Systems businesses, we intend to pursue the sale of our Body Systems business when market conditions support such actions,” said McClure.