ArvinMeritor Inc. today, April 13, announced that it has taken actions since October 2008 that will result in savings of about $430 million on an annual basis.
“The difficult conditions we continue to experience in our commercial and light vehicle markets has required us to take aggressive steps during the past six months to align our organization to the lower capacity levels,” says Chip McClure, chairman, chief executive officer and president of Troy, Mich.-based ArvinMeritor. “Many of these actions have regrettably impacted our employees, but the ArvinMeritor leadership team is committed to successfully manage the company through the continuing economic turbulence. We identified and implemented these actions quickly and are pleased to report the savings are significant, which will help protect the long-term health of the company.”
In the months of February and March, the company implemented initiatives — including the reduction of nearly 250 employees and other cost-reduction actions — that it says will result in annual savings of $95 million, or $64 million in fiscal year 2009, that is incremental to the $335 million in savings the company announced during its first-quarter earnings report on Feb. 5.
Since October, ArvinMeritor has announced the following cost-reduction actions:
“Through the implementation of these actions, our team continues to demonstrate their commitment to do what is necessary to respond aggressively to the current difficult economic conditions,” McClure says.