Volvo, Mack tap ArvinMeritor for axle contract

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TROY, Mich. — ArvinMeritor has inked major new contracts to supply its Meritor rear drive axles to Volvo Powertrain and Mack Trucks, Inc.

These new contracts represent sales revenues of more than US$150 million annually. Volvo Powertrain is a provider of services and powertrain components to Volvo Trucks North America and Mack.

The seven-year supply agreement, valued at a total of more than $1 billion, includes a new business win for the company’s Commercial Vehicle Systems (CVS) business group. It will produce proprietary Mack rear drive axles beginning in May 2004, as well its current contract to supply the standard rear drive axle supplier to Volvo Powertrain has been extended.

“This is a significant new business conquest for our company and is further evidence of ArvinMeritor’s growing global partnership with Volvo Truck Corporation,” says Tom Gosnell, president, CVS. “Receiving this award demonstrates that Volvo, the second largest commercial vehicle truck and bus manufacturer in the world, recognizes our ongoing technology, global quality and worldwide service support capabilities.”

In January 1999, ArvinMeritor acquired the axle manufacturing operations of Volvo Truck in Lindesberg, Sweden. The successful acquisition continues to enhance the company’s global growth initiatives and strengthens its position in the global automotive original equipment segment.

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