DETROIT, Mich. — ArvinMeritor has announced it will spin off its light-duty vehicle systems business to shareholders, so that it can focus more closely on its truck business group.
“The plan to separate our two businesses is the result of a comprehensive strategic review to enhance the company’s long-term value for our shareholders,” said Chip McClure, chairman, CEO and president. “We are confident that this transaction will not only unlock shareholder value, but will also significantly strengthen the competitive positions of both companies and better align them with their respective customer bases.”
He went on to say: “Each company will benefit from a greater strategic focus on its core business and growth opportunities as well as from increased recognition in each of its global market segments. In addition, the separate companies will offer more attractive and targeted investment opportunities, with incentives for management and employees that are more closely aligned with company performance and shareholder interests.”
The new light-duty business will be called Arvin Innovation, and the spin-off should be complete within a year, the company said. Once the transition is completed, Carsten Reinhardt, senior vice-president of ArvinMeritor and president of the company’s Commercial Vehicle Systems business will be named COO for ArvinMeritor.
Truck News is Canada's leading trucking newspaper - news and information for trucking companies, owner/operators, truck drivers and logistics professionals working in the Canadian trucking industry. All posts by Truck News