ArvinMeritor Aims to Triple Asian Business

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eavy-duty components maker ArvinMeritor wants to triple its business with Asian vehicle makers in the next five years and is launching a restructuring program that try to cost cuts, grow revenue and development new products, the Associated Press reported.

Chairman and Chief Executive Officer Chip McClure and Chief Financial Officer James Donlon said a slowdown in the coming year in North American heavy truck production and production cuts by big automotive customers General Motors Corp., Ford Motor Co. and DaimlerChrysler AG will hit results in the company’s current fiscal year.

ArvinMeritor will consider acquisitions or joint ventures to achieve its sales goal with Asian auto makers, McClure said.

ArvinMeritor currently generates about 9% of its $9 billion in annual revenue from sales in Asia and sales to Asian-based vehicle makers, AP said. Another 47% is generated in North America and 38% in Europe.

McClure said he wants to bring Asia, Europe and North American revenue to roughly one-third each, while expanding total revenue to about $11 billion to $12 billion over the next five years, AP reported.