ArvinMeritor has announced that it plans to move the shock and strut portion of its manufacturing operations from the Chickasha, Okla., U.S. facility to its plant in Queretaro, Mexico.
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The company met this week with employees to discuss the transfer plans, which will affect approximately 270 full-time and temporary Chickasha employees. The transfer of this business and the reduction in workforce will begin in September and conclude in November.
“Transferring operations within our business group improves our ability to compete,” said Rob Malone, vice president and general manager, Light Vehicle Aftermarket.
“Current market conditions require tough decisions.”
ArvinMeritor announced in November 2004 that it planned to divest the Light Vehicle Aftermarket business in a strategic move to focus its resources on the global original equipment automotive and commercial truck markets.
On an investor call in July, Chairman, CEO and President Chip McClure commented, “As we pursue potential opportunities for Light Vehicle Aftermarket, we will continue to be aggressive in the actions we’re taking to improve this business.” Regarding today’s announcement, McClure said, “Although unavoidable, we recognise the impact this will have on our Chickasha employees and the community.”
The company plans to maintain packaging, distribution, receiving, returns processing, design engineering and rod manufacturing operations at the Chickasha facility.
