ArvinMeritor’s Gosnell Sees Evidence of Slow Ascent to Recovery for Heavy-Duty Truck Market
LOUISVILLE, Ky. (March 19, 2003) —
Tom Gosnell, president, Commercial Vehicle Systems business group for
ArvinMeritor, Inc. (NYSE:ARM) reported today that the truck
market is seeing a slow, but steady increase. In addition, he stated that market
data suggests a stronger economy, and, specifically, a stronger truck market
moving out of the third quarter of 2003 and beyond. The remarks were made at an
ArvinMeritor media session during the Mid-America Trucking Show in Louisville,
Ky.
“We have seen a rise in fleet utilization, an
improved used truck situation, an extended fleet age and a monthly strengthening
of Class 8 orders since July of 2002,” said Gosnell. “Although we are reluctant
to say that the industry is rebounding, it seems that significant factors are
pointing in that direction. Our forecast is for a steady gain in global market
volumes between 2003 and 2007.”
According to data from the American Trucking
Association (ATA), truck tonnage is up eight percent in December 2002 from the
previous year. In addition, fleet utilization increased by eight percent over
the same period.
The North American (United States, Canada and
Mexico) production volumes for the Class 8 truck market in 2002 were 177,500
units. ArvinMeritor’s current forecast for 2003 is 170,000, climbing to 230,000
in 2004. The medium-duty, Classes 5-7 production volumes in 2002 were 136,900,
and are projected to be at 147,000 in 2003 and 181,000 in 2004.
“While this is good news for a depressed trucking
industry,” said Gosnell, “there still are some factors that point to a slow
recovery. Global instability – specifically in the Middle East – is contributing
to rising fuel costs and economic uncertainty. Diesel prices are currently at an
all-time high – close to 50 percent above the same time last year. Moreover, the
truck market is still concerned about the Environmental Protection Agency’s
(EPA) emission regulations – specifically the requirements for 2007 – that will
continue to affect truck engines.“
“The systems-based approach will help to offset
many of the concerns about costs and regulations by ensuring a lean-running and
smart-operating vehicle.” said Gosnell. “Moving forward, the increased use and
adoption of a systems-based approach for commercial vehicles will allow
suppliers and manufacturers to make the most out of the vehicles that are being
built and help them run more efficiently for peak performance.”
ArvinMeritor, Inc. is a premier $7-billion global
supplier of a broad range of integrated systems, modules and components to the
motor vehicle industry. The company serves light vehicle, commercial truck,
trailer and specialty original equipment manufacturers and related aftermarkets.
In addition, ArvinMeritor is a leader in coil coating applications. The company is headquartered in Troy, Mich.,
and employs 32,000 people at more than 150 manufacturing facilities in 27
countries. ArvinMeritor common stock is traded on the New York Stock Exchange
under the ticker symbol ARM. For more information, visit the company’s Web site
at: http://www.arvinmeritor.com/.
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This news release contains statements relating
to future results that are "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995. Actual results may differ
materially from those projected as a result of certain risks and uncertainties,
including but not limited to those detailed from time to time in the Company's
Securities and Exchange Commission filings.
