TROY, Mich. (Sept. 15, 2005) — ArvinMeritor Inc. said it plans to move the shock and strut portion of its manufacturing operations from Chickasha, Okla., to its plant in Queretaro, Mexico.
The company said it has met with employees to discuss the transfer plans, which will affect about 270 full-time and temporary Chickasha workers. The move and reduction in workforce begins this month and will conclude in November.
“Transferring operations within our business group improves our ability to compete,” said Rob Malone, vice president and general manager, light vehicle aftermarket for ArvinMeritor. “Current market conditions require tough decisions.”
In November 2004 the company said it planned to divest the light vehicle aftermarket business in a strategic move to focus its resources on the global original equipment automotive and commercial truck markets. “As we pursue potential opportunities for the light vehicle aftermarket, we will continue to be aggressive in the actions we're taking to improve this business,” Chairman, CEO and President Chip McClure told investors in July.
Regarding the current move of some of its manufacturing operations to Mexico, Mr. McClure said it was “unavoidable,” adding that “we recognize the impact this will have on our Chickasha employees and the community.”
The company plans to maintain packaging, distribution, receiving, returns processing, design engineering and rod manufacturing operations at the Chickasha facility.
Troy-based ArvinMeritor is an $8 billion global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. It serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and related aftermarkets and has approximately 31,000 employees at more than 120 manufacturing facilities in 25 countries.