ArvinMeritor to Close Carrollton Wheel Assembly Facility

Global market weakness has been cited as the reason behind ArvinMeritor’s decision to idle its Carrollton facility. Wheel end assembly operations at the plant, located in the US state of Kentucky, will be moved to other facilities in Kentucky and Ohio and the machining and casting activities currently performed on-site will be outsourced.

“Although the employees in Carrollton have demonstrated a strong commitment to performance and quality, the continued weakness in the global markets has driven the company to aggressively reduce costs to lower its breakeven point,” said Wayne Watson, general manager, North American Operations for ArvinMeritor. “Closing the Carrollton operation is another necessary step toward improving the company’s overall cost structure.”

The company stated on May 13 it had met with employees and officials from the United Auto Workers Local union to announce the closure, which will be conducted in phases and completed by the end of the year. According to an ArvinMeritor statement 129 employees will be affected by the closure, however a notice to the state of Kentucky puts the number at closer to 160.