A 65-percent decline in fiscal fourth quarter profits is forcing Troy, Mich.-based auto and truck parts maker ArvinMeritor to cut 1,500 hourly and salaried jobs.

According to the Detroit News, the company has been struggling for some time thanks to a sharp decline in demands for commercial vehicle parts.
The worldwide cutbacks represent 4 percent of the company’s 36,500 employees and will result in a pre-tax charge of $90 million in the first quarter of 2001.
ArvinMeritor and other parts makers are struggling because of declining demand for replacement parts, pricing pressures, unfavorable currency exchange rates, reduced output at Ford Motor Co. and lower North American output of heavy trucks, the article said.
ArvinMeritor reported fourth quarter profits of $29 million, or 43 cents a share, compared to $84 million, or $1.10 a share, in the same period last year. Sales slipped to $1.68 billion from $1.88 billion, with all of ArvinMeritor's operating groups posting sales declines.
The company also fired 240 workers last week and eliminated another 100 vacant jobs to cut costs.