ArvinMeritor,Troy, Mich., announced it is responding aggressively to the current weakness in global business conditions with restructuring and cost-reduction initiatives.
In addition, it is exploring strategic alternatives to the spin-off of its Light Vehicle Systems 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 company has:
* Accelerated restructuring actions, including workforce and discretionary cost reductions, to achieve an expected $125 million in annualized savings in 2009. The company is reducing its global workforce by 1,250 employees, or approximately 7 percent; the majority of this reduction is already complete.
* Implemented steps to maintain profitability and positive annual cash flow.
* Remained focused on its strategy to separate the Light Vehicle Systems and Commercial Vehicle Systems businesses, including pursuing strategic alternatives to ensure the completion of the separation, which may include a sale.
* Retained a strong liquidity position through recent renewals of significant factoring and securitization lines with key partner banks.
* Continued to focus on executing growth strategies and investing in critical product offerings and technologies.
* Repositioned cash for maximum flexibility, which will result in a non- cash income tax charge in fiscal year 2008.

"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," said McClure. "I am confident that when the global economies and our industry stabilize we will be a stronger, more focused company."

The new cost reduction actions announced today are in addition to ones the company executed over the past four years. During this period, the company consolidated and/or closed 17 of its North American and European manufacturing facilities; divested non-core businesses; reduced its global workforce by approximately 4,000; and implemented a business transformation program (Performance Plus).