ArvinMeritor makescuts for cost savings

April 16, 2009
ArvinMeritor Inc, Troy MI, has taken actions since October 2008 that will result in savings of approximately $430 million on an annual basis, according to company information.

ArvinMeritor Inc, Troy MI, has taken actions since October 2008 that will result in savings of approximately $430 million on an annual basis, according to company information.

In the months of February and March, the company implemented initiatives that include the reduction of nearly 250 employees and other cost reduction actions.

The workforce has been reduced by 1,800 globally, plant-level furlough programs have been initiated, including government supported programs, and two manufacturing facilities have been closed.

In addition, pay reductions have been implemented for salaried employees worldwide, 401-K matching contributions in the United States have been eliminated, and merit increases for 2009 have been suspended.

The company also has reduced capital spending, extended shutdowns at all plants, eliminated company-paid education and training programs, reduced charitable trust contributions, suspended quarterly dividend, reduced Board of Directors annual compensation by 10 percent, and eliminated all non-critical discretionary spending.