ArvinMeritor said it plans to spin off its Light Vehicle Systems (LVS) business, forming a new company to be named Arvin Innovation, Inc. Its Commercial Vehicle Systems (CVS) business will remain. The spinoff would be implemented through a pro rata tax-free dividend to ArvinMeritor shareholders, who will own 100% of the common stock of the new company.
ArvinMeritor's LVS business provides dynamic motion and control components, modules and systems to passenger car and light truck OEMs. Its products target body systems such as roof and door modules and systems, motors, latches, window regulators, and electronic controls, and chassis systems, including chassis and suspension modules and systems, ride control products, electronic chassis control systems, and global aftermarket chassis products and wheels.
Phil Martens, currently ArvinMeritor's senior vice president and president, Light Vehicle Systems, will become the president and CEO of Arvin Innovation. James Marley, retired chairman of the board of AMP, Inc. and an ArvinMeritor board member, will lead Arvin Innovation's board of directors as non-executive chairman. The new company will be headquartered in Detroit at the current location of the LVS Detroit Technology Center.
"As a separate independent unit, Arvin Innovation will be better positioned to drive specific growth initiatives, including improving our customer focus and expanding our global presence," said Martens. "With increased flexibility as a stand-alone business, Arvin Innovation will have an excellent opportunity to create next-generation systems technology solutions for our customers around the world."
ArvinMeritor will remain headquartered in Troy, MI. Chip McClure will remain as ArvinMeritor's chairman, CEO and president.ArvinMeritor's common stock will continue to trade on the New York Stock Exchange under the symbol ARM. The firm has applied for Arvin Innovation to be listed on the NASDAQ global stock market under the symbol ARVI.