ArvinMeritor Thursday announced that instead of selling its Light Vehicle Business group as a whole unit, with today's economic realities it has decided to reorganize the business.
"We are firmly committed to our long-term strategy of focusing on the commercial vehicle on- and off-highway market segments for both original equipment manufacturers and aftermarket customers," said Chip McClure, chairman, CEO and president of ArvinMeritor. "As previously announced, we were in negotiations to sell the LVS business group in its entirety. However, in light of the unprecedented challenges in the credit markets and the volume weakness in our industry, we have determined that in this financial environment we cannot capture the appropriate value for LVS by selling the business as a whole. We are confident that this decision will ultimately generate the best returns for our shareholders."
The company will reorganize its LVS business group to include:
* Body Systems. While the company continues to pursue a sale of the Body Systems business separately, it will be managed to continue to improve its financial performance and to ensure that a future sale will provide an acceptable return to ArvinMeritor shareholders.
* Chassis Systems. The company will continue to explore and evaluate strategic alternatives for a timely and orderly exit from this business.
* Wheels. As previously announced, ArvinMeritor expects to retain the Wheels business.
In May 2008, ArvinMeritor announced a plan to spin off its LVS business to its shareholders within twelve months, contingent upon satisfactory financial and automotive market conditions. Due to the challenging market environment, in October 2008 the company announced that while a spin-off was still an option, it was also investigating alternatives to achieve the separation, including a potential sale. With today's announcement, ArvinMeritor remains committed to separating the businesses.
During an interim period, LVS Body Systems, as well as the LVS corporate staffs, will report to Jay Craig, ArvinMeritor's chief financial officer. LVS Chassis Systems will report to Jim Donlon, executive vice president, and the Wheels business will to report to Mary Lehmann, senior vice president, Strategic Initiatives, and Treasurer.
Effective immediately, Phil Martens, former president of LVS, will leave the company to pursue other opportunities.
"We are firmly committed to our long-term strategy of focusing on the commercial vehicle on- and off-highway market segments for both original equipment manufacturers and aftermarket customers," said Chip McClure, chairman, CEO and president of ArvinMeritor. "As previously announced, we were in negotiations to sell the LVS business group in its entirety. However, in light of the unprecedented challenges in the credit markets and the volume weakness in our industry, we have determined that in this financial environment we cannot capture the appropriate value for LVS by selling the business as a whole. We are confident that this decision will ultimately generate the best returns for our shareholders."
The company will reorganize its LVS business group to include:
* Body Systems. While the company continues to pursue a sale of the Body Systems business separately, it will be managed to continue to improve its financial performance and to ensure that a future sale will provide an acceptable return to ArvinMeritor shareholders.
* Chassis Systems. The company will continue to explore and evaluate strategic alternatives for a timely and orderly exit from this business.
* Wheels. As previously announced, ArvinMeritor expects to retain the Wheels business.
In May 2008, ArvinMeritor announced a plan to spin off its LVS business to its shareholders within twelve months, contingent upon satisfactory financial and automotive market conditions. Due to the challenging market environment, in October 2008 the company announced that while a spin-off was still an option, it was also investigating alternatives to achieve the separation, including a potential sale. With today's announcement, ArvinMeritor remains committed to separating the businesses.
During an interim period, LVS Body Systems, as well as the LVS corporate staffs, will report to Jay Craig, ArvinMeritor's chief financial officer. LVS Chassis Systems will report to Jim Donlon, executive vice president, and the Wheels business will to report to Mary Lehmann, senior vice president, Strategic Initiatives, and Treasurer.
Effective immediately, Phil Martens, former president of LVS, will leave the company to pursue other opportunities.
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