Meritor, Inc. Business Report FY2010

Business Highlights

Financial Overview

(in million USD)
  FY2010 FY2009 Rate of
Sales 3,590 3,075 16.7 -
EBITDA 250 186 34.4 -
Net Income 12 (1,188) - -
Commercial Truck
Sales 1,960 1,566 25.2 1)
EBITDA 85 (38) - -
* EBITDA: Earnings Before Interest, Tax, Depreciation, and Amortization

Commercial Truck

-The effect of foreign currency translation increased sales by $69 million. Excluding the effects of foreign currency, sales increased by $325 million or 21 percent, reflecting higher OE production volumes in all regions.


-The Company announced that Meritor(R) Xtended Lube (MXL) drivelines have been selected as standard equipment by Daimler Trucks North America LLC (DTNA) for its heavy duty vehicles. MXL technology is installed on Freightliner Cascadia, Coronado and Coronado SD and Western Star trucks from the production in late April 2010. At 100,000 miles, the MXL's lubrication interval is twice as long as other conventional drivelines. (From a press release on April 27, 2010)

-Meritor WABCO supplies single piston, lightweight air disc brake PAN 22 to US-based Hendrickson International for Hendrickson’s trailer axles and suspensions. Meritor WABCO is a joint venture of the Company and the WABCO Automotive Control Systems. (From a press release on February 4, 2010)


-Meritor WABCO Vehicle Control Systems has received the Quality Excellence Award from Hino Motors Manufacturing U.S.A. for the second straight year. The award recognizes Meritor WABCO's facility in Hebron, Kentucky, USA which achieved a defect rate of 0 parts per million (PPM) during 2009. The plant supplies pneumatic and hydraulic anti-lock braking (ABS) systems to Hino facilities in Williamston, West Virginia, USA and Woodstock, Ontario, Canada. (From a press release on July 21, 2010)

-The Company has received US-based truck manufacturer PACCAR's 2009 Quality Achievement Award. The award recognizes suppliers with a defect rate of 50 parts per million (PPM) or better. The facilities to achieve this standard are: Forest City, North Carolina, USA; Franklin, Kentucky, USA; Cienega de Flores, Mexico; Escobedo, Mexico; and Lindesberg, Sweden. The Company supplies axles, braking systems and other components for PACCAR's Kenworth, Peterbilt and DAF trucks. (From a press release on July 19, 2010)


R&D Expenditure

(in million USD)
  FY2010 FY2009 FY2008
Overall 68 54 57

R&D Facilities

Name Location
Technical Center Detroit, Michigan, USA
Bangalore, India
Engineering Center USA, Brazil, China, France, Germany, India and UK

R&D Activities

<North America>
-The Company announced its intention to invest 23 million USD over the next five years in its technical center located in Troy, Michigan, USA. The investment is to expand its technologies that are focused on fuel efficiency, next generation brake technology, suspensions and vehicle dynamics capabilities. This project is expected to create 125 jobs by 2014. (From a press release on July 20, 2010)

-The Company announced that it plans to invest 42 million USD to bolster its brake business in Europe. This investment is mainly focused on expansion of the ELSA air disc brake and S-Cam product lines, and development of future generation braking technologies. In addition, ArvinMeritor is investing in advanced engineering to develop tomorrow's foundation brake technology including electro-mechanical actuation, active adjustment and smart heat management.(From a press release on September 20, 2010)

-The Company launched its new 18X single reduction axle for European commercial market. Available in 2011, the new Meritor 18X is targeted for the on-highway market with GCW weights of 65+ tonnes and more than 700 hp. (From a press release on September 20, 2010)

Next Generation Technology

Active Safety Systems
-Meritor WABCO Vehicle Control Systems announced the availability of SafetyDirect, which is available for order for all North American commercial vehicle fleets. SafetyDirect works by combining the technologies in Meritor WABCO's SmartTracand OnGuard active safety systems with their partner Iteris' SafetyDirect, an online application for analyzing data and lane departure warning system. It allows customers to collect and analyze information about the performance of the driver and vehicle. Iteris, Inc., headquartered in California, U.S.A., is a solution supplier in the field of Intelligent Transportation Systems. (From a press release on October 17, 2010)

Intelligent Axle System
-The Company introduced its new LogixDrive intelligent axle system. Enabled by electronic controls, the drive unit constantly senses temperature, speed, braking and torque conditions to apply the optimized amount of lubrification to the axle. The LogixDrive system will provide fuel savings of approximately one percent without the need for driver interface, as well as parasitic energy loss reductions of more than 30 percent compared to prior axle generations. The LogixDrive system will be available beginning in 2012. (From a press release on September 20, 2010) 

Investment Activities

Capital Expenditure

(in million USD)
  FY2010 FY2009 FY2008
Overall 56 82 98
Commercial Truck 29 68 80


Investment Activities


-The Company plans to invest 15 million USD to bolster its brake business in China. The Company will establish new technical center and manufacturing facility in Nanjing, Jiangsu Province. The Company expects to expand its range of applications in 2011 with a product portfolio tailored to the needs of the on-highway truck segment. (From a press release on September 20, 2010)


-The Company will invest approx. 10 million USD to build a new axles plant in Resende, Brazil, which will become operational in 2012. German truck manufacturer MAN announced its plans to establish a supplier park in Resende and the new plant will be located there. The Company is supplying components for the TGS and TGX trucks that MAN starts producing in 2012. Suspensys Sistemas Automotivos Ltda., a joint venture between the Company and Brazilian company Grupo Randon, will also build a factory in the park. Suspensys will manufacture brakes and suspensions to be delivered to MAN. (From a press release on April 30 2010)