Meritor plans to close European trailer axle business in July
Apr 1, 2011 12:00 PM
Meritor Inc announced that it will close its European trailer axle business July 31, cutting 171 jobs and taking $17 million to $23 million in charges over the next year — including an estimated $12 million to $18 million expected to result in cash expenditures.
“This decision is driven by the competitive nature of the European trailer axle market, which requires significant scale to address increasing cost challenges,” said Joe Mejaly, president, aftermarket and trailers, Meritor. “In addition, following the decline in recent years, the market for commercial vehicle trailers is recovering more slowly than other sectors. After an extensive review process, we have concluded that we will be unable to achieve acceptable financial returns on a sustainable basis and that future investment would be better deployed to other businesses.”
In addition to the company's main trailer axle manufacturing operation in Cwmbran, United Kingdom, Meritor also has trailer employees in France, Italy, and Spain.
Mejaly said the company remains committed to customer service through its global Aftermarket business. Service parts will continue to be available and warranties will be honored.
Meritor's trailer axle manufacturing operations in North and South America, including the company's Suspensys joint venture in South America with the Randon S/A group, are also unaffected by this action.
