ArvinMeritor chief says firm committed to remaining strong in South America
ArvinMeritor's Chip McClure told journalists in Brazil that the company is planning an up to a $10-million [U.S.] investment for its commercial vehicle business in Brazil. (The Trucker/Lyndon Finney)
The Trucker News Services
8/10/2009
SAO PAULO, Brazil — ArvinMeritor Inc.’s 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, McClure said the company was 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 [U.S.] 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 9 percent quarter-over-quarter, McClure noted.
“Our growth strategy involves bringing new products and technology to South America,” McClure said. “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.”
According to McClure, ArvinMeritor’s success in the region can be attributed to its experienced South American management team: Antonio Rossi, director of axle operations; Silvio Barros, director of sales and marketing; Angelo Morino, director of aftermarket; Jose M. Fernandes, director of procurement; and Adalberto Momi, director of finance.
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.
“Iochpe-Maxion approached us about acquiring this asset and we determined that selling it was in the best interest in terms of ArvinMeritor’s strategy and the Wheels businesses’ long-term growth,” McClure said. “This new owner will invest in Wheels and the valuable, talented people who support it.
“The Fumagalli wheel brand has a 60-year heritage and holds significant meaning for the global customer base,” he said. “This transaction supports our efforts to move our goal of becoming a commercial vehicle company while at the same time offering Wheels an exciting new future as a strategic core business in the Iochpe-Maxion portfolio. We are grateful for the significant contributions the people of this business made to the success of our company. The White Shirt culture will continue to be recognized as a benchmark for best-in-class manufacturing initiatives.”
The Wheels business operates manufacturing facilities in Limeira, Brazil and San Luis Potosi, Mexico.
Kevin Jones of The Trucker staff can be reached to comment on this article at kevinj@thetrucker.com.
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