ArvinMeritor will be supplying Meritor rear drive axles for Volvo and Mack trucks, replacing Dana.

The company announced a seven-year, $1 billion supply agreement with Volvo Powertrain, a division of AB Volvo that provides services and powertrain components to Volvo Trucks North America and Mack Trucks.
Last week, Dana announced that Mack is dropping Dana as a supplier of chassis assemblies and groomed axles for Mack’s on-highway and vocational trucks. Mack is not renewing its current chassis assembly agreement that expires at the end of 2003, or the axle agreements that expire in May 2004.
ArvinMeritor's Commercial Vehicle Systems business group will produce proprietary Mack rear drive axles beginning in May 2004 and continue to be the standard rear drive axle supplier to Volvo Powertrain.
ArvinMeritor officials called the deal "further evidence of ArvinMeritor's growing global partnership with Volvo Truck Corporation."
The move appears to be a logical result of the Volvo/Mack merger. Volvo already has a contract with ArvinMeritor to assemble Volvo's Swedish axles in Sweden, and Meritor/Rockwell is Volvo's standard axle supplier in the U.S.
Together, Volvo Trucks North America and Mack Trucks represent 23 percent of North American factory truck sales.