ArvinMeritor is selling its chassis ride control business to private equity firm OpenGate Capital, as part of its earlier announced plan to pull out of the light vehicle chassis business.
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The company last January reorganised its light vehicle systems unit into body systems, chassis systems and wheels units because it was unable to sell the chassis business at a suitable price. It said it would retain its wheels business.
Last week Arvin Meritor announced it was selling its stake in two chassis joint ventures. The company, which also makes commercial truck parts, began to spin off its light vehicle unit to create two “financially strong” companies to attract investors. In October it stopped the process because of the increasing difficulty in selling the division given the weakening economy. In January, the company opted to reorganise the business to try to sell it off in pieces.
ArvinMeritor in May reported a $52m loss for the quarter ended 31 March which compared with net income of $24m in Q1 2008.
Chairman and chief executive Chip McClure said Arvin Meritor would continue to refocus on the commercial vehicle business even in the difficult economic environment.
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By GlobalData
