ArvinMeritor launches Aftermarket Services business segment

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Updated Jan 19, 2011

ArvinMeritor on Tuesday, Jan. 18, announced at the Heavy Duty Aftermarket Week in Las Vegas, Nev., that it will offer multiple logistics services to customers through a new business segment called Meritor Aftermarket Services, and also announced several personnel moves related to the new operation.

The company also announced “The Real Deal,” a new financial tool designed to analyze a customer’s business practices and provide insight into their total transactional costs. ArvinMeritor also announced that it will expand the availability of its Meritor MXL (Meritor Extended Lube) driveline to the North American aftermarket.

Through Meritor Aftermarket Services, the company will address customers’ needs for value-added warehousing and distribution facets of the third-party logistics marketplace. Meritor Aftermarket Services – which launches initially in North America – joins the company’s existing Aftermarket and Trailer business.

“This is an important step in our aftermarket evolution,” says Joe Mejaly, president of ArvinMeritor’s Aftermarket and Trailer business. “We will now offer companies in the industrial and commercial vehicle markets the opportunity to leverage our recognized strengths in material planning, quality, packaging, distribution and value-added services globally.”

“This new segment creates the opportunity for us to become a major player in the global third-party logistics marketplace,” says Craig Cartmill, general manager, Worldwide Aftermarket Operations for ArvinMeritor. “We are uniquely positioned to use our strong North American presence and brand recognition to launch this business segment. And as we continue to develop our global infrastructure, we will be prepared for additional business opportunities and expansion in the third-party logistics marketplace.”

Tim Bauer is appointed director of Business Development for the new segment and will lead the global market strategy implementation. Bauer has been with ArvinMeritor for 20 years. Paul Nyers, who also has extensive management experience at ArvinMeritor, has been appointed sales manager. Both are supported by a global Aftermarket operations team.

Daniel Hopgood has been appointed as vice president, Aftermarket, Americas, reporting to Mejaly. Hopgood is responsible for leading the development and execution of the strategic business plan for the company’s Aftermarket organization in North and South America. His objective is to drive sustainable profitable growth of the company’s aftermarket products and services, and to distinguish ArvinMeritor as one of the premier aftermarket solution providers in the industry.

“Dan’s background makes him the ideal person for this position,” Mejaly says. “His extensive finance background and prior operational experiences give him a unique perspective that will greatly benefit our growing aftermarket business.” Supporting Hopgood by region are Terry Livingston, general manager, Aftermarket, United States and Canada; Mario Velasco, general market manager, Aftermarket, Mexico; and Angelo Morino, director, Aftermarket, South America.

Hopgood most recently served as vice president and controller for ArvinMeritor’s global operations. Before joining the company in 2007, he held a number of financial and operational roles in the automotive and services industries working with MSX International and Delphi Automotive Systems. Hopgood started his career with Coopers and Lybrand (now PricewaterhouseCoopers), where he performed audit and consulting work for numerous automotive and retail clients.

The company’s new financial tool is designed for its sales management team to meet individually with customers to discuss information specific to their business and show them what “The Real Deal” can offer them in potential annual savings.

“Practically every customer wants a deal that relates to the piece-price of a part,” Mejaly says. “While we understand that piece-price plays a role in the profitability of our customers, managing the total transactional cost of doing business can yield profits for our customers as well. As a leader in the aftermarket, ArvinMeritor understands all the business best practices – from supplier utilization, parts numbers stocked in inventory, inventory turns, electronic commerce, sales and technical training, quality and engineering support, and more.”

The company’s aftermarket product portfolio consists of more than 20 product lines encompassing more than 200,000 part numbers – ordered, stocked, managed and shipped (with a high fill rate and optimum accuracy) via Xpressway, electronic data interchange (EDI), Transnet, Vendor Managed Inventory (VMI) and its Customer Care Team.

Over the past five years, the company has invested significantly in the growth and expansion of its global Aftermarket business, which has included:
• Continuing development of a remanufacturing business in Plainfield, Ind.;
• Purchasing Mascot Truck Parts (Mississauga, Ontario);
• Expanding its product portfolio from the Meritor and Euclid brands to a broader offering of “all-makes” parts;
• Establishing an Engineering Center in Bangalore, India, and Shanghai, China;
• Establishing Meritor Aftermarket Services, a new third-party logistics business offering value-added warehousing and a full menu of distribution services for customers globally; and
• Designing products including PlatinumShield remanufactured brake shoes, MXL drivelines, Meritor WABCO System Saver 1200Plus air dryers and a new MPG series of products aimed at reducing fleets’ costs.

“We have considered the costs of doing business in the aftermarket for more than 40 years,” says Mejaly. “We understand the entire process from issuing purchase orders, order expediting and processing an invoice. Our Aftermarket solutions allow our customers to elevate their business performance to new heights.”

The Meritor XML driveline was designed for truck operators who want reduced maintenance costs and a longer warranty. The Meritor MXL is supplied with the same product ratings and application guidelines as the Meritor 17N, 176N and 18N series. A new 16N series for medium-duty vehicles will be available in spring 2011. “The MXL combines the simplicity and durability of the proven RN U-joint design with the premium sealing capability of the RPL permanently lubed product,” says Doug Ringer, product manager of Drivelines, Aftermarket for ArvinMeritor.

This series of greaseable drivelines – with 100,000-mile lubrication intervals and a three-year 300,000-mile warranty in linehaul service – was introduced as an original equipment component in March 2009. It joins the RPL permanently-lubricated driveline in the Meritor family of driveline products for commercial vehicles.

The MXL’s extended lubrication interval aligns with recommended lubrication intervals of other chassis components in linehaul vocations. “With the Meritor MXL, extended lubrication intervals become the new standard in greaseable drivelines, allowing customers to more effectively manage routine preventive maintenance and control expenses,” Ringer says.

The main and interaxle slip assemblies combine an advanced nitrile seal that helps keep contaminants out with a protective guard that resists road debris, increasing slip assembly operating life. The u-joint, which builds upon the high-strength Meritor RN series design, has a needle-bearing package with contoured ends to help minimize axial (side) loading, and the glass-reinforced nylon thrust washer helps prevent metal-to-metal contact.

ArvinMeritor says the MXL’s RN Series yoke configurations are compatible with other industry standard yokes, making them interchangeable with most greaseable drivelines in linehaul use today. Truck operators may standardize on a single, greaseable driveline regardless of vehicle make or model. The product is available with both easy service and full round yoke designs.