ArvinMeritor to spin offlight vehicle business

May 7, 2008
ArvinMeritor Inc, Troy MI, is planning to spin off its Light Vehicle Systems (LVS) business to ArvinMeritor shareholders, with the Commercial Vehicle Systems (CVS)

ArvinMeritor Inc, Troy MI, is planning to spin off its Light Vehicle Systems (LVS) business to ArvinMeritor shareholders, with the Commercial Vehicle Systems (CVS) business remaining with ArvinMeritor.

The LVS business will be named Arvin Innovation Inc. Chip McClure will remain as ArvinMeritor’s chairman, chief executive officer (CEO), and president. James Marley, currently a board member of ArvinMeritor, will lead Arvin Innovation’s board of directors as non-executive chairman.

Until the spin is completed, Marley will remain on the ArvinMeritor board. Phil Martens, currently ArvinMeritor’s senior vice-president and president, Light Vehicle Systems, will become the president and CEO of Arvin Innovation.

Jim Donlon, executive vice-president and chief financial officer of ArvinMeritor will immediately begin supporting ArvinMeritor’s LVS business group in the capacity of chief financial officer (CFO) as it prepares to become an independent company. Upon completion of the spinoff, he will become executive vice-president and CFO of Arvin Innovation.

Jay Craig, senior vice-president and controller, will replace Donlon as ArvinMeritor’s senior vice-president and CFO, effective immediately. Rakesh Sachdev, senior vice-president of ArvinMeritor and president of Asia Pacific, will become executive vice-president, chief administrative officer and managing director of Emerging Markets of the new company. Until a successor is named, he will continue to be responsible for ArvinMeritor’s Asia Pacific region.

Also when the spinoff is completed, Carsten Reinhardt, senior vice-president of ArvinMeritor and president of the company’s Commercial Vehicle Systems business, will be named chief operating officer (COO) for ArvinMeritor. In addition, Mary Lehmann, currently the company’s senior vice-president, Strategic Initiatives, and Treasurer, will expand her responsibilities to include Information Services, M and A activities, and Investor Relations. Vernon Baker, currently senior vice-president and general counsel, with overall legal responsibility for all of ArvinMeritor’s global operations and its subsidiaries, and Environmental, Health and Safety, will also assume responsibility for the global Human Resources organization.

ArvinMeritor will remain headquartered in Troy. Arvin Innovation will be headquartered in Detroit MI at the current location of the LVS Detroit Technology Center with other corporate offices located in Europe, Asia Pacific, and South America.