ArvinMeritor has been awarded contracts to supply Meritor rear drive axles to Volvo Powertrain, a subsidiary of AB Volvo, which provides powertrain components to Volvo Trucks North America and Mack Trucks.

The new contracts represent sales revenues of more than $150 million annually.

The seven-year supply agreement, valued at more than $US1 billion, includes a new business win for the company’s Commercial Vehicle Systems (CVS) business group to produce proprietary Mack rear drive axles beginning in May 2004 and an extension of its current business as standard rear drive axle supplier to Volvo Powertrain.

ArvinMeritor acquired the axle manufacturing operations of Volvo Truck in Lindesberg, Sweden in January 1999.

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