DOW JONES NEWSWIRES
ArvinMeritor Inc. (ARM) is selling its stakes in two joint
ventures in its light-vehicle chassis business as the auto-parts
maker pushes to get out of that business.
The company, which also makes commercial-truck parts, began
taking steps in May 2007 to spin off the light-vehicle unit to
create two "financially strong" companies that would attract
investors. That changed in October when ArvinMeritor said it would
rethink the move and try to sell the division given the weakening
economy. In January, the company opted to reorganize the business
and try to sell it off in pieces.
The joint ventures made up 45% of the chassis segment's 2008
sales. Terms of the sales weren't disclosed.
Being sold to the partners is ArvinMeritor's 57% stake in a
venture with a subsidiary of Mitsubishi Steel Manufacturing Co.
(5632.TO) that makes and sells automotive coil springs, torsion
bars and stabilizer bars in North America. ArvinMeritor also
disclosed Thursday that earlier this month is sold its 51% stake in
Gabriel de Venezuela, which makes supension parts and exhaust
systems for Latin America.
ArvinMeritor's so-called light-vehicle-systems unit was
reorganized into body systems, chassis systems and wheels units.
The company is retaining the wheels business.
Shares closed Wednesday at $3.60 and were inactive premarket.
The stock is up 26% in 2009 but down 75% from a year earlier amid
the slump in North American auto production.
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136;
kevin.kingsbury@dowjones.com