ArvinMeritor seeks alternatives to spinoff

By Lisa Kerner

Charlotte, N.C., Oct. 31 - ArvinMeritor, Inc. said it is exploring strategic alternatives to the spinoff of its light vehicle systems business as well as implementing other cost-reduction measures in response to current market conditions.

The company said it remains focused on separating the light vehicle systems and commercial vehicle systems businesses, which may result in a sale.

ArvinMeritor has accelerated restructuring actions that could result in $125 million in annualized savings in 2009.

"Swift and decisive actions are necessary in response to today's global economic conditions, which include softness in all markets in which we participate, as well as weaker foreign currencies," chairman, chief executive officer and president Chip McClure said in a company news release.

In May, ArvinMeritor announced its plans to spin off its light vehicle systems business to its shareholders through a pro rata tax-free dividend within 12 months.

ArvinMeritor, located in Troy, Mich., provides a range of integrated systems, modules and components to the motor vehicle industry.

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