ArvinMeritor (ARM) emphasized its target to maintain a strong foothold in South America by focusing on original equipment manufacturers (OEMs) and aftermarket for both the on- and off-highway global markets. According to Chip McClure – the Chairman, President and CEO of the Michigan-based global automotive parts manufacturer – the company enhanced its production by 9% year over year in the region amidst industry downturn.
ArvinMeritor currently has wholly owned operations and joint ventures in South America. The company supplies axle parts to both the OEMs and aftermarket. It operates a joint venture, Freios Master and Suspensys, with Randon Corp. in Caxias do Sul, Brazil . The joint venture supplies drum brakes, hubs, trailer and truck suspensions and trailer axles.
McClure commented that ArvinMeritor aims to invest up to $10 million in its commercial vehicle business in Brazil. The investment will help the company to expand into new product segments. It will also support new manufacturing technology such as advanced gear-making and efficient, high-quality equipment to make parts and components.
Recently, ArvinMeritor announced its intention to sell the Wheels business based in Limeira, Brazil and San Luis Potosi, Mexico. The company will sell the business to Iochpe-Maxion, a Sao Paulo, Brazil-based manufacturer of wheels and frames for commercial vehicles, railway freight cars and castings. The sale is expected to close by the end of 2009.
Read the full analyst report on “ARM”
Zacks Investment Research
Uncategorized