Industry Focus – June 20081
People In The News
Following are personnel changes that recently occurred in the trucking industry:
- Hendrickson named Nirmal Tolani director of business development for its international operations.
- Donaldson Company announced William I. Vann, vice president, NAFTA operations, Mexico and Latin America, will retire at the end of fiscal year 2008; Lowell F. Schwab will become senior vice president, global operations, Mexico and Latin America; Jay L. Ward was promoted to senior vice president, engine systems and parts; and Tod E. Carpenter will become vice president, Europe and Middle East.
- Thermo King named Martin Duffy its general manager of HVAC Americas and Neil D. Tamppari its manager, technical and customer solutions, HVAC Americas.
WABCO Expands Global Operations
WABCO Holdings Inc. announces the launch of two manufacturing facilities located in India and the extension of an existing software design center that are owned by WABCO-TVS (India) Ltd., an affiliate of WABCO and its joint venture partner, a member of the TVS Group.
Currently manufacturing crankshafts, crankcases and vacuum pumps, one of the new facilities is located in Mahindra World City, in the southern outskirts of Chennai, one of India’s first special economic zones. Recently, the foundation stone for the second phase extension of the Mahindra manufacturing facility was laid by Jacques Esculier, WABCO CEO. The company says the extension will double the facility’s capacity, which is dedicated to exporting products and serving WABCO customers worldwide.
Another new facility, located in Jamshedpur, supplies the production lines of Tata Motors by manufacturing brake chambers, spring brake actuators and other braking aggregate parts. The newest WABCO-TVS factories presently employ approximately 150 people.
Situated at TidelPark in Chennai, India’s largest information technology park, the WABCOSoftwareDesignCenter has completed its expansion program, doubling its capacity and upgrading its technology platform to support engineering capabilities. At this location, approximately 85 engineers develop embedded software for automotive applications in electronic braking, stability, transmission and climate control.
ArvinMeritor to Spin Off Light Vehicle Systems
ArvinMeritor announced that its board of directors has approved a plan to spin off its Light Vehicle Systems (LVS) business to ArvinMeritor shareholders, with the Commercial Vehicle Systems (CVS) business remaining with ArvinMeritor.
“The plan to separate our two businesses is the result of a comprehensive strategic review to enhance the company’s long-term value for our shareholders,” says Chip McClure, chairman, CEO and president. “We are confident that this transaction will not only unlock shareholder value, but also will significantly strengthen the competitive positions of both companies and better align them with their respective customer bases.
“Each company will benefit from a greater strategic focus on its core business and growth opportunities, as well as from increased recognition in each of its global market segments. In addition, the separate companies will offer more attractive and targeted investment opportunities, with incentives for management and employees that are more closely aligned with company performance and shareholder interests,” continued McClure.
The planned spinoff of the LVS business – to be named Arvin Innovation, Inc. – would be implemented through a pro rata tax-free dividend to ArvinMeritor shareholders. Upon completion of the spinoff, ArvinMeritor shareholders will own 100 percent of the common stock of Arvin Innovation. Approval of the spinoff by ArvinMeritor shareholders is not required, and the company expects to complete the spinoff within the next 12 months, contingent upon satisfactory financial and automotive market conditions as well as other customary approvals.
“Our decision to spin off the LVS business is part of the company’s ongoing corporate transformation – our 3R strategy to rationalize, refocus and regenerate – that has been underway for the last three years,” McClure says. “Separating these two businesses and successfully implementing our Performance Plus initiatives are major steps in the transformation to build two stronger, more competitive companies for the future.”