Arvin goes into cost-cutting mode in face of financial crisis
TROY, Mich. — Citing the global economic downturn as the culprit, ArvinMeritor announced $125 million in cost reduction initiatives, including layoffs of about 1,250 workers in 2009.
The layoffs, which have already begun, represent about 7 percent of the company’s global workforce.
Other "aggressive" cost-cutting strategies include comprehensive restructuring and exploring strategic alternatives to separate its Light Vehicle Systems (LVS) business group.
"Swift and decisive actions are necessary in response to today’s global economic conditions, which include softness in all markets in which we participate, as well as weaker foreign currencies," said Chip McClure, chairman, CEO and president of ArvinMeritor.
The spin-off of the LVS group could potentially include a sale.
"We believe the actions we are announcing today, as well as the progress we have made over the last several years to improve our cost structure solidly position our company to address the weakness we are seeing in the market place," added McClure. "I am confident that when the global economies and our industry stabilize we will be a stronger, more focused company."
Have your say
This is a moderated forum. Comments will no longer be published unless they are accompanied by a first and last name and a verifiable email address. (Today's Trucking will not publish or share the email address.) Profane language and content deemed to be libelous, racist, or threatening in nature will not be published under any circumstances.