ArvingMeritor to invest US$ 10 million
Valor Econômico
The plan of American auto parts manufacturer ArvinMeritor of operating only in the segment of commercial vehicles should be concluded within the next 18 months. The forecast was announced yesterday by the international president of the company, Chip McClure. The officer also informed that, in the Brazilian unit, the new focus will bring an investment of US$ 10 million for the development of products and improvement of processes.
According to McClure, Brazil has been and will always be an important part of the business of ArvinMeritor, now only aimed at the market of commercial vehicles (trucks, buses and agricultural machines). "We will continue investing in the production of shafts, brakes and suspensions", affirmed the executive, emphasizing that 10% of the results of ArvinMeritor are from Brazil.
In Brazil, the company now has a production unit in Osasco (SP), which will receive the new investments, besides being a partner of the Randon group in the companies Suspensys and Master, both in Caxias of Sul (RS). Last year, the company had already directed US$ 10 million to the modernization of the Osasco unit. On the strategy to give priority to the segment of commercial vehicles, precisely the one most affected by the international crisis, McClure said he believes there is a restrained demand for these models, which means a heated market in the next years.
On the other hand, although the perspectives are favorable, the company has been having a steep fall in sales. In the third quarter of its fiscal year, the company reported losses of US$ 28 million, due to a fall of 47% in the sales compared to the same period of last year. In the meantime, the income amounted to US$ 993 million. For McClure, what is important now is to keep the positive cash flow. "In a depressed market, cash and income are the priorities", he declared. In the quarter, the cash flow amounted to US$ 99 million.