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Meritor to Close Three Plants

Nov. 18, 2020
Cost savings of $10 million annually are expected with the planned closing of the gear, axle, and gear box manufacturing operations in Chicago, California, and Michigan.

Commercial vehicle drivetrain and braking system manufacturing Meritor Inc. is planning to close three U.S. plants, according to a reorganization plan introduced recently with its Q4 2020 report. The plants are in Chicago, Livermore, Calif., and Livonia, Mich., and the closings are expected to save $10 million in annual operating costs.

The details of the closing plans have not been reported.

The Chicago U.S. gear plant manufactures ring and pinion gears, shafts, and carriers for differentials and transmissions, military, commercial, specialty, motorsports, and performance markets.

The Livermore plant designs, engineers, manufactures and assembles steer drive axles for off-highway and specialty products.

The Livonia plant manufactures specialty gear boxes for medium-, heavy-, and extra heavy-duty trucks for off-highway, construction, defense, rail, and other industrial applications. These products are available to OEMs and aftermarket customers.

Meritor also plans to close an administrative office in Zurich, Switzerland.

"While fiscal year 2020 brought unforeseen headwinds, Meritor implemented cost containment actions early, bolstered our liquidity and maintained a strong balance sheet, which helped offset the financial impact of the pandemic and enabled us to continue making long-term investments... We remain confident that our M2022 plan (a multi-year strategy to increase global sales and expand activities in ‘adjacent markets’) remains on track."