ArvinMeritor Cutting 1,250 Jobs, May Sell Auto-Components Unit

Heavy-duty truck parts maker ArvinMeritor Inc. said Friday it will cut 1,250 jobs and may sell the auto-components unit it had planned to spin off to shareholders.

The reductions, about 7% of its workforce, are mostly complete and part of a $125 million cost savings set for 2009.

They employment cuts will affect 450 salaried and 800 hourly positions, ArvinMeritor said in a statement.

The company said in May that it would spin off its $2.2 billion auto unit into a new company called Arvin Innovation.

“Although the LVS [light vehicle system] spin-off continues to be an option, ArvinMeritor is investigating other alternatives to achieve the separation, including a potential sale,” ArvinMeritor said in a statement.