2000 Annual Report
BIGGER STRONGER FASTER

“If you’re not leading the pack,
you’re falling behind.”
— Larry Yost, chairman, CEO
“We choose to lead.”
— Bill Hunt, vice chairman, president
BIGGER STRONGER
THE NEW ARVINMERITOR ARVINMERITOR IS NO. 1
IS THE INDUSTRY’S 11TH OR NO. 2 IN MOST OF OUR GLOBAL
LARGEST INDEPENDENT SUPPLIER MARKET SEGMENTS
GLOBAL SUPPLIER, WITH AND GENERATES SIGNIFICANT
OPERATIONS IN MORE COST, OPERATING
THAN 25 COUNTRIES. AND SALES SYNERGIES.

ARVINMERITOR PROFILE
We are a $7.7-billion supplier of a broad range of The new ArvinMeritor represents an ongoing pursuit
integrated automotive systems, modules and to be an admired enterprise, with the industry scale
components that capitalize on innovative technology and scope to successfully compete in the top tier of
and engineering expertise to provide solutions that the global motor vehicle supplier industry.
meet our customers’ needs.
Sector Diversity
% of fiscal year 2000 pro forma sales
12% Other
12% LVA
6% CVA
9% International Trucks/Trailers
17% North American
Trucks/Trailers
16% European Light Vehicles
28% North American
Light Vehicles
ArvinMeritor LVS contributes Offering the most complete drivetrains in LVA - Light Vehicle Aftermarket
CVA - Commercial Vehicle Aftermarket
more than $100 to the content of the industry, ArvinMeritor CVS content
most light vehicles manufactured per vehicle is more than $3,000, with a
today, with a potential of $1,500. potential content of up to $17,000.
LIGHT VEHICLE SYSTEMS
LVS competes in three major light vehicle areas: responsive customer service further strengthen this
apertures, undercarriage and exhaust. Strategic business unit.
alliances and advanced engineering solutions drive
LVS efforts to become a global provider of original LIGHT VEHICLE AFTERMARKET
equipment integrated systems. With leading market share in each of the segments
it serves, LVA is committed to providing top-notch
customer service, delivery and support after the
COMMERCIAL VEHICLE SYSTEMS
CVS counts the top ten players in heavy- and original sale, with a growing portfolio of superior
medium-duty truck and trailer original equipment as its products and strong brands.
key customers. The merger adds emissions systems,
ride and stability control and filtration systems to the OTHER (COIL COATING)
CVS comprehensive drivetrain portfolio. Processing millions of square feet of steel every day,
coil coating applies primer and finish coats on both
A strong business with tremendous potential for sides of a wide metal strip. Pre-painted strips are
low-investment growth, market-leading CVS then used in a variety of durable, low-maintenance
aftermarket leverages a sound supply chain applications that improve insulation, energy
infrastructure with solid brand recognition. A broad efficiency and weather resistance.
range of products for after the original sale, as well as

HIGHLIGHTS OF THE YEAR
Letter to Shareowners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Light Vehicle Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Commercial Vehicle Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
Light Vehicle Aftermarket . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
Other (Coil Coating) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
2000 Financial Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
Corporate Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54
Directors and Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55
Pro Forma Sales Pro Forma Operating Income Pro Forma Diluted
Earnings Per Share
$7.5 $7.7
$8.0 $ in billions $600 $ in millions $4.00
$3.66 $3.56
7.1% 6.7%
$6.3 $3.11
7.1%
$6.0 $3.00
$5.6
$5.3
$400
6.2% $2.30
5.8%
$4.0 $2.00 $1.85
$200
$2.0 $1.00
96 97 98 99 00 96 97 98 99 00 96 97 98 99 00
Special Items
Operating income
%
before special items as
a percent of sales
FINANCIAL HIGHLIGHTS
In millions, except per share amounts
Pro Forma(1)
Year Ended September 30, 2000 1999 1998
Sales
Light Vehicle Systems $ 3,668 $ 3,474 $ 3,041
Commercial Vehicle Systems 2,926 2,941 2,425
Light Vehicle Aftermarket 950 906 686
Other 170 116
178
Total Sales $ 7,722 $ 7,491 $ 6,268
Operating income(2) $ 515 $ 531 $ 444
As a percent of sales 6.7% 7.1% 7.1%
Net income(3) $ 254 $ 279 $ 236
Diluted earnings per share(3) $ 3.56 $ 3.66 $ 3.11
Diluted common shares outstanding 71.4 76.3 75.9
Cash provided by operations $ 344 $ 415 $ 383
Pre-tax interest coverage 3.9x 4.9x 5.8x
Long-term debt to capitalization ratio (4) 64% 56% 45%
(1) Pro forma financial information presented as if the merger had occured at the beginning of each fiscal year and reflects (a) the amortization of goodwill from the
merger and the elimination of historical Arvin goodwill amortization expense; (b) the adjustment to interest expense for borrowings to fund the Arvin cash
consideration and other financing costs; (c) the income tax effects of (a) and (b) above; and (d) the adjustment of shares outstanding representing the exchange
of one share of Meritor common stock for 0.75 shares of ArvinMeritor common stock and one share of Arvin common stock for one share of ArvinMeritor
common stock, based on the average shares outstanding for each year.
(2) Operating income excludes restructuring and other charges of $30 million, $35 million and $7 million in fiscal year 2000, 1999 and 1998, respectively, and gain
on sale of business and other of $89 million and $31 million in fiscal year 2000 and 1999, respectively. Operating income also excludes merger-related expenses
of $70 million in fiscal year 2000.
(3) Net income and earnings per share exclude the special items discussed in (2) above and non-operating one-time expenses of $3 million , $1 million and $25
million in fiscal 2000, 1999 and 1998, respectively.
(4) Long-term debt to capitalization ratio based on combined results of Arvin and Meritor as of September 30 of each year presented.

TO ARVINMERITOR SHAREOWNERS
On July 7, 2000, we realized our goal to merge the strength, expertise
and resources of two industry leaders into one company, thereby
creating the new ArvinMeritor. Together, we will provide extraordinary
value to our employees, our customers and our shareowners. With
our strong leadership team, we’re meeting the future with the
combined strengths of our best-in-class technologies, systems,
practices and people.
TOGETHER, WE’RE BIGGER.
Achieving $7.7 billion in pro forma sales in fiscal year 2000,
ArvinMeritor’s broad product portfolio gives us the ability to supply
systems, modules and components to almost every vehicle on the
road today. Above all, together, we have the diversity, balance and
range of capabilities to create a sustainable competitive advantage.
TOGETHER, WE’RE STRONGER.
Combined, ArvinMeritor has the engineering and technological
expertise and the program management capabilities to develop
new systems and products, as well as the ability to move quickly
when significant growth opportunities arise. We are committed to
10-percent top-line growth, as well as to increasing our earnings per
Larry Yost, chairman & CEO (right)
share by 15 to 18 percent annually over the business cycle. We intend
Bill Hunt, vice chairman & president
to achieve these goals primarily through margin expansion, driven by
new higher-value products and aggressive cost-reduction initiatives.
TOGETHER, WE’RE FASTER.
ArvinMeritor has the resources to provide around-the-clock, cost-
effective solutions and to deliver them to our customers faster,
wherever they do business, around the world.
Because the new ArvinMeritor is bigger, stronger and faster,
we’re well on our way to becoming the supplier of choice for the
global motor vehicle industry.
FAS T E R
F I N A N C I A L R E S U LT S F O R F I S C A L Y E A R 2 0 0 0
During the first six months, most of our businesses benefited from
THE NEW ARVINMERITOR HAS strong markets. However, for the remainder of the year, we faced
THE FLEXIBILITY AND FINANCIAL many challenges that were spawned by conditions that affected the
STRENGTH TO SEIZE NEW entire industry. Our pro forma net income in fiscal year 2000, excluding
OPPORTUNITIES AND EXPAND special items, was $254 million, nine percent lower than pro forma
1999, excluding special items. On a diluted basis, the related earnings
INTO GLOBAL MARKETS.
per share were $3.56 compared to $3.66 per share a year ago.
Our aggressive measures to drive down costs focus sharply on
delivering improved financial performance and building a stronger
global Tier One supplier position. To that end, we must anticipate
1

C R E AT I N G A W I N N I N G C U LT U R E
The “You Have a Part in It” ArvinMeritor’s collaborative Since Day One, Road Tour
Road Tour 2000 recognizes energy drives us toward 2000 has taken senior
the essential contribution our aggressive goals. leaders to more than 70
that all ArvinMeritor ArvinMeritor sites around
employees can make to the world, where they have
the new company’s provided employees with
future success. It also integration updates,
salutes employees in met with media and
their efforts to develop community representatives
advanced products and listened to employees’
and solutions for concerns and ideas.
ArvinMeritor customers.

and respond quickly to economic changes. That’s why we are
making considerable effort to align our cost structure with current
market conditions to:
• Reduce capital spending;
• Act on every opportunity to improve operating efficiencies;
• Adjust our salaried work force downward;
• Restructure the company’s operations; and
• Streamline and consolidate manufacturing facilities around the world.
During ArvinMeritor’s first 100 days, our disciplined integration
process helped the new company identify ways to exceed its
initial expectations for 2001 cost-savings synergy targets by 33
percent. We have identified $40 million in after-tax savings so far
— significantly more than our original $30-million after-tax goal.
These savings will come from adopting best practices and
eliminating duplication wherever possible, including in areas such
as procurement and logistics, human resources, facilities, finance
and manufacturing. There are still additional opportunities for
significant cost savings across the business units, and we expect
to trim $100 million in pre-tax costs by 2003.
ArvinMeritor and GM combined
technological innovation and Several industry-wide factors in the fourth quarter contributed
significantly to the disappointing fiscal year 2000 results, including
corporate vision to bring racing
substantial softening in Class 8 commercial truck production in North
technology to the street, with
America, weakened light vehicle aftermarket sales, a weak euro and
the first-ever, mass-produced
interruptions in North American automotive production schedules.
titanium exhaust system for the
2001 Corvette Z06.
With formidable tasks ahead, ArvinMeritor begins the 21st century
with confidence that we will provide value to our shareowners by:
• Focusing on our core competencies and prudently divesting a
number of non-core functions;
• Generating cash through operational excellence;
• Growing the business by delivering advanced technologies to
our customers; and
• Delivering a rate of return on invested capital above peer
group averages.
We also will continue our relentless efforts to drive down fixed costs,
with strategies such as outsourcing non-core products; establishing
a low-cost infrastructure; rationalizing and consolidating assets; and
improving labor productivity and inventory turnover.
ArvinMeritor also has targeted revenue enhancements to deliver an
additional $450 million in sales by 2004. These new marketing
opportunities were created by the merger and are incremental, not
previously viable for either enterprise operating alone.
3

EXPAND THE POTENTIAL: GETTING IN GEAR
We know that the new ArvinMeritor can succeed only if we pull
together and create a dynamic team. Thanks to the talent and
dedicated efforts of our people, we’re doing just that. Besides
meeting and exceeding many of our synergy targets, we also have
streamlined and standardized systems and processes in areas that
impact the entire organization, such as quality, information
technology, finance, procurement and operations.
We also have identified a number of exciting new marketing
opportunities. Some of those, such as our undercarriage and
corner module strategies, combine several Arvin and Meritor
products into an integrated solution. We also will leverage Arvin’s
light vehicle exhaust technology expertise to develop exhaust
and emission solutions for commercial trucks — a market where
Meritor traditionally holds leading market share positions.
Our technical expertise drives superior responsiveness and customer
service. With considerable engineering strength, ArvinMeritor continues
to propel innovation and product breakthroughs to develop advanced,
Last year alone — in new or affordable technologies for the global motor vehicle industry.
expanded ArvinMeritor global
AT THE STARTING LINE: TAKING
technical centers — our
ADVANTAGE OF CHANGE
engineers submitted
The integration of ArvinMeritor operations provides a solid
more than 700 invention
platform for turning challenges into opportunities. Managing a
disclosures for consideration.
successful integration process depends on how well people are
engaged and work together toward a common goal. All parties
must discover new, more effective ways to do things. And that is
exactly what our team is doing.
To advance the new ArvinMeritor, we established 19 integration
teams who began meeting weekly, well before the July merger. Team
leaders report to both of us directly. Not only are these 400 highly
dedicated team members charged with determining the long- and
short-term objectives for the whole enterprise, they also are
responsible for eliminating waste, overlap and duplication of effort.
Additionally, they are charged with developing a shared vision and
purpose for the new venture. Fully accountable, the teams work
closely with integration experts and track their real-time progress on
a new Web-based integration tool.
Change provides the catalyst for innovation. As we move forward,
the ArvinMeritor continuous improvement organization — a key
group that reports directly to the vice chairman — will ensure the
4

An unsere Aktionäre:
Am 7. Juli 2000 setzten wir unseren Plan in die Tat Finanzen und Produktion. In den verschiedenen Integrationsprozeß erfolgreich verläuft, müssen alle
um, die Stärke, Erfahrung und Mittel zweier Geschäftsbereichen bestehen weitere Möglichkeiten Beteiligten engagiert auf ein gemeinsames Ziel
Branchenführer zu einem integrierten, höchst für signifikante Kosteneinsparungen, wodurch wir mit hinarbeiten. Alle Beteiligten müssen neue, effektivere
effizienten Unternehmen, dem neuen ArvinMeritor, zu einer Verringerung der Kosten vor Steuern um 100 Wege beschreiten. Und genau das tut unser Team.
vereinen. Zusammen stellen wir einen enormen Wert Millionen US Dollar bis zum Jahr 2003 rechnen.
Um dem neuen ArvinMeritor zum Aufstieg zu
für unsere Mitarbeiter, Kunden und Aktionäre dar. Mit
Verschiedene, die gesamte Industrie betreffende verhelfen, haben wir 19 Integrationsteams aufgestellt,
unserem starken Führungsteam treten wir der Zukunft
Faktoren im vierten Quartal waren für die die lange vor dem Zusammenschluß im Juli damit
mit vereinten Kräften entgegen, mit erstklassigen
enttäuschenden Ergebnisse im Finanzjahr 2000 begannen, sich wöchentlich zu treffen. Die 400
Technologien, Systemen, Verfahren und Mitarbeitern.
ausschlaggebend. Zu diesen Faktoren gehören ein hochmotivierten Teammitglieder bekamen nicht nur
Zusammen sind wir größer. bedeutender Rückgang in der Produktion von die Aufgabe, die lang- und kurzfristigen Ziele des
Nutzfahrzeugen der Klasse 8 in Nordamerika, ein Gesamtunternehmens festzulegen, sondern auch
Mit einem vorläufigen Umsatz von 7,7 Milliarden US
geschwächter Ersatzteilmarkt für Personenkraftwagen, unnötige, sich überschneidende und mehrfach
Dollar im Jahr 2000 verfügt ArvinMeritor über eine
ein schwacher Euro und Unterbrechungen in der ausgeführte Tätigkeiten zu beseitigen. Darüber hinaus
umfassendere Produktpalette, die es uns ermöglicht,
planmäßigen Automobilproduktion in Nordamerika. sollen sie gemeinsame Visionen und Ziele für das
Systeme, Module und Komponenten für fast alle
neue Unternehmen entwerfen. Die Teams arbeiten
Fahrzeuge auf unseren Straßen zu bieten. Darüber
Mit gewaltigen Aufgaben für die Zukunft und in der eigenverantwortlich und eng mit Integrationsexperten
hinaus sind unsere gemeinsamen Leistungen so
tiefen Überzeugung, daß wir für unsere Anleger zusammen und verfolgen ihren tatsächlichen
vielfältig, ausgewogen und weitreichend, daß sie einen
dauerhafte Werte schaffen werden, startet Fortschritt über ein neues web-basiertes
dauerhaften Wettbewerbsvorteil darstellen.
ArvinMeritor in das 21. Jahrhundert. Wir werden Integrationstool. Die Leiter der jeweiligen Teams
Zusammen sind wir stärker. • uns auf unsere Kernkompetenzen konzentrieren berichten wöchentlich direkt an uns beide.
Vereint hat ArvinMeritor das technische und und wohlüberlegt einige nicht zum Kernbereich
Änderungen wirken als Katalysator für Innovationen.
technologische Know-how sowie die notwendige zählende Tätigkeiten aufgeben
Auch in der Zukunft wird die “ArvinMeritor Continuous
Kompetenz im Programm-Management, neue • Gewinn durch herausragende betriebliche
Improvement Organization” – eine Gruppe mit
Systeme und Produkte zu entwickeln und auf Leistungen erwirtschaften
Schlüsselfunktion, die direkt an den Vice Chairman
Wachstumsmöglichkeiten schnell zu reagieren. Auch • unsere Geschäftsaktivitäten ausweiten, indem wir
berichtet, – die ständige Beobachtung und
für die Zukunft haben wir uns zum Ziel gesetzt, eine unseren Kunden fortschrittlichste Technologien
Umsetzung der festgelegten Verfahrensweisen und
Umsatzsteigerung von 10 Prozent zu erreichen, und bieten
Synergien sicherstellen. Es liegt ferner in ihrem
wir beabsichtigen, den Aktiengewinn um 15 auf 18 • und eine für die Branche überdurchschnittliche
Verantwortungsbereich, die offensiven
Prozent in diesem Konjunkturzyklus zu erhöhen. Wir Rendite auf investiertes Kapital erreichen.
Leistungskriterien, wie das ArvinMeritor Performance
wollen dieses Ziel in erster Linie durch Erhöhung der
Weiterhin werden wir in unseren Bemühungen nicht System (AMPS), welches auf dem wirkungsvollen
Margen realisieren, durch neue, hochwertige Produkte
nachlassen, die fixen Kosten auf ein niedrigeres Arvin Total Quality Production System (ATQPS)
sowie konsequente Kostenreduzierung.
Niveau zu bringen. Als Strategien hierfür sind zu basiert, innerhalb des Unternehmens durchzusetzen.
Zusammen sind wir schneller. nennen: das Outsourcen von Produkten, die nicht zu
Ein Blick voraus: wir liegen vorne
ArvinMeritor ist in der Lage, rund um die Uhr zu unserem Kerngeschäft gehören, der Aufbau einer
reagieren: kostengünstige Lösungen schnell und Die Geschichte von ArvinMeritor ist eine Geschichte
kostengünstigen Infrastruktur, Rationalisierung und
weltweit zu liefern – wo immer sie benötigt werden. des Wachstums durch integrierte Systeme und
Konsolidierung des Anlagevermögens sowie die
Modullösungen, die unseren Anteil an jedem Fahrzeug
Verbesserung der Arbeitsproduktivität und des
Weil das neue ArvinMeritor größer, stärker und und gleichzeitig unseren Marktanteil erhöhen sollen.
Lagerumschlags.
schneller ist, sind wir auf dem besten Wege, uns als Zusammen verfügen wir über ein erfahrenes
Lieferant erster Wahl für die Kraftfahrzeugindustrie ArvinMeritor hat sich bis zum Jahr 2004 Managementteam mit herausragenden Fähigkeiten
zum Marktführer zu entwickeln. Umsatzsteigerungen in Höhe von 450 Millionen US und einem weltweiten Kundenstamm sowie über die
Dollar als Ziel gesetzt. Neue Marketingmöglichkeiten Finanzkraft, neue Gelegenheiten in einem immer
Ergebnisse 2000
haben sich durch den Unternehmenszusammenschluß weiter zusammenwachsenden Industriezweig zu
In den ersten sechs Monaten profitierte der Großteil ergeben und bedeuten einen Zuwachs, der für die nutzen.
unserer Geschäftstätigkeit von gesunden Märkten. In Einzelunternehmen nicht realisierbar gewesen wäre.
Wir werden auch weiterhin unseren Schwerpunkt auf
der zweiten Jahreshälfte jedoch hatten wir uns
Neue Wege beschreiten: die das Cash Management sowie auf die Transparenz
Herausforderungen zu stellen, die die gesamte Industrie
Startvoraussetzungen unserer Managementmethoden unter Beweis stellen.
betrafen. Unser vorläufiger Gewinn im Finanzjahr 2000
Uns ist bewußt, daß das neue ArvinMeritor nur Erfolg Leistungsanreize und Entlohnung bleiben streng an
betrug 254 Millionen US Dollar ohne außerordentliche
haben kann, wenn wir gut zusammenarbeiten und ein unsere Ziele gebunden, die die Norm für die jeweilige
Posten, das sind 9 Prozent weniger als im Jahr 1999.
dynamisches Team bilden. Dank dem Talent und Bezugsgruppe darstellen.
Der Gewinn pro Aktie (verwässert) sank auf 3,56 US
Ehrgeiz unserer Mitarbeiter gehen wir genau diesen
Dollar im Vergleich zu 3,66 US Dollar im Vorjahr.
Gestärkt durch unsere vereinte Finanzkraft wird das
Weg. Wir haben nicht nur unsere Erwartungen in die
neue ArvinMeritor sowohl intern als auch extern durch
Unsere konsequenten Maßnahmen zur Synergieeffekte erreicht und übertroffen, wir haben
sorgsam durchdachte Partnerschaften wachsen.
Kostenreduzierung konzentrieren sich stark auf das auch Systeme und Prozesse rationalisiert und
Erzielen eines verbesserten Geschäftsergebnisses und vereinheitlicht, die die gesamte Organisation Wir setzen alles daran, in dieser wettbewerbsintensiven,
eine stärkere Positionierung als globaler Direkt- betreffen - wie Qualität, Informationstechnologie, wertorientierten Wirtschaft in der Führungsposition zu
Lieferant. Um dies zu erreichen, müssen wir Finanzen, Einkauf, Fertigung und Logistik. sein. Die höchste Priorität hat dabei für uns die
wirtschaftliche Veränderungen vorhersehen und
Schaffung eines dauerhaften Wertes für unsere
schnell auf sie reagieren. Aus diesem Grund Dabei haben wir eine Reihe neuer, spannender Mitarbeiter, Kunden und Aktionäre. Mit Ihrer
unternehmen wir große Anstrengungen, unsere Marketingmöglichkeiten entdeckt. Einige davon, andauernden Ermutigung und Unterstützung werden wir
Kostenstruktur mit den heutigen Gegebenheiten des wie zum Beispiel unsere Fahrgestell- oder dieses Ziel durch konsequentes Wachstum bei Umsatz
Marktes in Einklang zu bringen. Wir werden Kurvenmodul-Strategie, verbinden mehrere Arvin- und und Gewinn umsetzen. Dabei werden wir unsere
• Investitionsausgaben konsequent reduzieren Meritor-Produkte zu integrierten Lösungen. Auch Erfahrung in Technik und Technologie nutzen und ein
• jede Gelegenheit zur Verbesserung der werden wir Arvins Erfahrung in der Auspufftechnologie starkes und flexibles Unternehmen führen.
betrieblichen Effizienz wahrnehmen für Leichtfahrzeuge nutzen, indem wir Auspuff- und
• die Löhne unserer Mitarbeiter nach unten anpassen Unsere Mitarbeiter haben sich eingesetzt, um das
Abgaslösungen für Nutzfahrzeuge entwickeln – einem
• die Unternehmensbereiche restrukturieren und laufende Jahr zum denkwürdigsten überhaupt zu
Markt, in dem Meritor traditionell Marktführer ist.
• die Produktionsstätten in aller Welt rationalisieren machen. Mit “unsere Mitarbeiter” meinen wir all jene
Unser technisches Know-how bringt Überlegenheit im
und konsolidieren. engagierten ArvinMeritor-Mitarbeiter, die aus der
Bereich Reaktionsvermögen und Kundenservice mit ganzen Welt zusammengekommen sind, um voller
In den ersten einhundert Tagen des sich. Mit seinen beträchtlichen technischen Enthusiasmus ein neues Unternehmen aufzubauen.
Integrationsprozesses hat ArvinMeritor Mittel und Möglichkeiten treibt ArvinMeritor immer wieder Dies ist eine außergewöhnliche Leistung – eine
Wege gefunden, seine ursprünglich für 2001 Innovationen und durchschlagende Produktneuheiten Leistung, auf die wir äußerst stolz sein können.
geplanten Ziele im Bereich Kosteneinsparung durch voran und entwickelt so moderne Technologien für die
Synergieeffekte um 33 Prozent zu überschreiten. Das Zusammen . . . sind wir größer, sind wir stärker, sind
weltweite Fahrzeugindustrie zu angemessenen
bedeutet, daß wir bisher mit 40 Millionen US Dollar wir schneller.
Preisen.
Einsparungen nach Steuern rechnen können – weit
Wir sind ArvinMeritor, und wir sind in Bewegung.
An der Startlinie: von Veränderungen
mehr als die angestrebten 30 Millionen US Dollar
profitieren
Einsparungen nach Steuern. Diese Einsparungen
Der Zusammenschluß der Geschäftsbereiche von
resultieren aus der Anwendung der geeignetsten
Arvin und Meritor bietet die geeignete Plattform,
Verfahren und der weitmöglichsten Vermeidung
grundlegende Veränderungen im Rahmen dieser
identischer Vorgänge. Hiervon betroffen sind vor allem
Herausforderung einzuleiten. Damit ein solcher
Bereiche wie Einkauf und Logistik, Personal, Anlagen,

A LOS ACCIONISTAS DE AR VINMERITOR
El 7 de julio del 2000, realizamos nuestra meta en un 33 por ciento sus metas iniciales para desarrollar tecnologías avanzadas alcanzables
de sinergia de los ahorros de costos para el año 2001.
perseguida largamente, de ese modo creamos la para la industria global de vehículos automotores.
nueva ArvinMeritor, al unir la fuerza, la experiencia
DEL INICIO: APROVECHANDO EL
Eso significa que hasta ahora hemos identificado
y los recursos de dos líderes de la industria bajo
$40 millones de dólares en ahorros después de CAMBIO
una sola compañía. Juntos, le brindaremos un
descontar los impuestos - significativamente más La integración de las operaciones de ArvinMeritor
valor extraordinario a nuestros empleados, a que nuestra meta original de $30 millones de provee una plataforma sólida para la transformación
nuestros clientes y a nuestros accionistas. Con un dólares después de descontar los impuestos. Estos de desafíos en oportunidades. El manejo de un
equipo directivo fuerte, nos enfrentamos al ahorros se realizarán por medio de la adopción de
proceso de integración próspero depende de lo
futuro con las fuerzas combinadas de nuestras mejores prácticas y la eliminación de duplicación
comprometido que estén las personas y de lo bien
donde sea posible, incluyendo áreas tales como
tecnologías, sistemas, prácticas y personal que
que trabajen hacia una meta común. Esto significa
compras y logística, recursos humanos, plantas,
representan lo mejor de su clase.
que todos deben descubrir maneras nuevas y más
finanzas y manufactura. Existen aún oportunidades
para ahorros significativos en los costos en todas
JUNTOS, SOMOS MÁS GRANDES. eficaces para llevar a cabo su cometido. Y es
las unidades comerciales, y esperamos recortar
Logrando ventas pro forma de $7.700 millones de exactamente lo que nuestro equipo está haciendo.
$100 millones de dólares en costos antes de
dólares en el año fiscal 2000, ArvinMeritor tiene
descontar impuestos para el año 2003. Para adelantar la nueva ArvinMeritor, establecimos 19
una lista de productos más amplia que nos da la
equipos de integración que empezaron a reunirse
capacidad para suministrar sistemas, módulos o
Varios factores que afectaron toda la industria en el semanalmente con mucha antelación a la fusión
componentes para casi todo vehículo en cuarto trimestre contribuyeron significativamente a los
realizada en el mes de julio. Los líderes de los equipos
circulación en la actualidad. Sobre todo, juntos, resultados decepcionantes del año fiscal 2000,
nos rinden cuenta semanalmente directamente a
poseemos la diversidad, equilibrio y gama de induyendo el ablandamiento considerable en la
los dos. No solamente se les encomendaron los
posibilidades para crear una ventaja competitiva producción de camiones de la clase 8 en
objetivos a corto y largo plazo para toda la empresa a
sostenible. Norteamérica, debilitamiento del mercado de
estos 400 miembros del equipo altamente dedicados,
post-venta de vehículos ligeros, un euro débil e
JUNTOS, SOMOS MÁS FUERTES. sino que también son responsables de la eliminación
interrupciones a los programas de fabricación de
En forma combinada, ArvinMeritor posee la de desperdicios, superposición de tareas y duplicación
automóviles en Norteamérica.
experiencia de tecnológica e ingeniería, y la de esfuerzos. Además, se les encomendó desarrollar
capacidad de manejar programas para el desarrollo una visión y un propósito compartido para la nueva
Con tareas formidables por delante, ArvinMeritor
de nuevos sistemas y productos, así como la empresa. Los equipos totalmente responsables,
comienza el siglo 21 con la confianza que le
habilidad de poder actuar con rapidez cuando surgen trabajan estrechamente con expertos y siguen su
proporcionaremos valor a nuestros accionistas mediante:
oportunidades de crecimiento significativo. Seguimos progreso en tiempo real por medio de una ayuda nueva
• El enfoque de nuestro esfuerzo en las
comprometidos a lograr un crecimiento del 10 por de integración basada en el Internet.
aptitudes esenciales y despojándonos
ciento de primera línea, así como también aumentar prudentemente de un número de funciones no
El cambio proporciona un catalizador para la
los dividendos por acción en un 15 a 18 por ciento esenciales;
innovación. A medida que avancemos, la
anuales sobre el ciclo de negocios. Nuestro propósito • La generación de efectivo a través de excelencia
organización de mejora continua de ArvinMeritor —
es lograr estas metas en primer lugar por medio de operante;
un grupo clave que rinde cuenta directamente al
un aumento de los márgenes, impulsado por los • Aumentar el negocio mediante la oferta de
Vicepresidente de la Junta de Administración —
productos de mayor valor y por las iniciativas tecnología avanzada;
asegurará el examen continuo y la realización de las
agresivas en la reducción de costos. • La entrega de una tasa de rentabilidad sobre el
mejores prácticas y sinergias identificadas. También
capital invertido por encima del promedio
JUNTOS, SOMOS MÁS RÁPIDOS. son responsables de impulsar estándares agresivos
paritario.
ArvinMeritor tiene los recursos para proporcionar de desempeño a través de toda la compañía, tal
soluciones rentables durante las veinticuatro horas como el Sistema de Desempeño de ArvinMeritor
También continuaremos con nuestros esfuerzos
del día, y entregárselas a nuestros clientes más (AMPS), que está basado en el Sistema de Calidad
implacables hacia la reducción de costos fijos,
rápidamente, alrededor del mundo. Total en la Producción de Arvin (ATQPS).
mediante estrategias tales como la subcontratación
de productos no esenciales; el establecimiento de
Ya que la nueva ArvinMeritor es más grande, y cada NO NOS VERÁN NI EL POLVO:
una infraestructura de costo bajo; la racionalización
vez más fuerte y más rápida, estamos bien MIRANDO HACIA EL FUTURO
y consolidación del activo; y el mejoramiento de la
encaminados a convertirnos en el proveedor elegido La historia de ArvinMeritor es un relato de crecimiento
productividad de la mano de obra y de la rotación
de la industria global de vehículos automotores. con sistemas integrados y soluciones modulares que
de inventario.
aumentarán nuestro contenido por vehículo y
RESULTADOS FINANCIEROS PARA aumentaría nuestra participación del mercado. Juntos,
ArvinMeritor también ha previsto mejoras en los
EL AÑO FISCAL 2000 tenemos un equipo directivo experto, relaciones
ingresos que rendirán $450 millones de dólares
Durante los primeros seis meses, la mayoría de sólidas con clientes a través del mundo así como la
adicionales en ventas para el año 2004. Estas
nuestros negocios se beneficiaron de mercados nuevas oportunidades de mercadeo fueron creadas fuerza financiera para aprovechar las oportunidades de
fuertes. Sin embargo, durante el resto del año, por la fusión y son adicionales, no eran viables una industria que está en consolidación.
enfrentamos muchos desafíos generados por las anteriormente para ninguna de las empresas cuando
condiciones que afectaron a toda la industria. Seguiremos demostrando importancia sólida en la
operaban en forma independiente.
Nuestros ingresos netos pro forma para el año fiscal gestión de caja, así como también nuestro
AMPLIAR LA POTENCIALIDAD:
2000, excluyendo las partidas especiales, fueron de compromiso de comunicar nuestro planeamiento
ENTRANDO EN ACCIÓN
$254 millones de dólares, lo cual representa el 9 por de gestión. Los incentivos de desempeño y com-
Sabemos que la nueva ArvinMeritor sólo podrá tener
ciento menos que la pro forma 1999, excluyendo las pensación continuarán ligados a nuestras metas.
éxito si aunamos esfuerzos y creamos un equipo
partidas especiales. En forma diluida, el rendimiento
Fortalecidos por una posición financiera combinada,
dinámico. Gracias al talento y los esfuerzos dedicados
relacionado por acción fue de $3.56 dólares
la nueva ArvinMeritor planea crecer orgánicamente,
de nuestra gente es esto lo que estamos haciendo.
comparado con $3.66 dólares del año anterior.
así como por medio de asociaciones señaladas
Además de estar satisfaciendo y excediendo muchas
Nuestras medidas agresivas para reducir los costos cuidadosamente. Estamos comprometidos a estar a
de nuestras metas de sinergia, también hemos
se enfocan sostenidamente en la entrega de un la vanguardia en una economía altamente
modernizado y estandarizado los sistemas y los
rendimiento financiero mejorado y en edificar una competitiva impulsada por los precios. Ante todo,
procedimientos en áreas que impactan a toda la
posición global más fuerte como proveedor de estamos comprometidos a entregar valor de larga
organización, tales como; la calidad, la informática, las
primer nivel. Con ese fin, debemos de anticipar los duración a nuestros empleados, clientes y
finanzas, las compras y las operaciones.
cambios económicos y responder rápidamente a accionistas. Con su estímulo y apoyo, lo lograremos
También hemos identificado nuevas oportunidades
ellos. Por esta razón estamos realizando un procurando el crecimiento a nivel superior y del
interesantes de comercialización. Algunas de ellas,
esfuerzo considerable para alinear nuestra estructura resultado final, por medio del mejoramiento de
tales como nuestras estrategias del chasis y el módulo
de costos con las condiciones del mercado actuales nuestra experiencia en tecnología e ingeniería, así
de esquina, combinan varios productos de Arvin y
para: como el mantenimiento de un negocio ágil y fuerte.
Meritor para producir una solución integrada. También
• Reducir las inversiones de capital;
Nuestra gente ha trabajado muy duro para lograr que
aprovecharemos la experiencia tecnológica de Arvin
• Aprovechar cada oportunidad para mejorar los
este año fuera uno de los más memorables. Al decir
relativa a sistemas de escape para vehículos ligeros
rendimientos operativos;
“nuestra gente”, nos referimos a todos los empleados
para desarrollar soluciones de escape y emisiones para
• Ajuste del personal asalariado hacia abajo;
de ArvinMeritor que han dedicado sus esfuerzos en
camiones comerciales — un mercado en el que la
• Reestructurar las operaciones de la compañía; y
todo el mundo para crear con entusiasmo una nueva
participación de Meritor ocupa tradicionalmente
• Racionalizar y consolidar las plantas de
compañía. Este es un logro extraordinario — del cual
posiciones de liderazgo.
fabricación todo el mundo.
todos podemos estar sumamente orgullosos.
Nuestra experiencia técnica impulsa un grado de
Durante los primeros 100 días de existencia de
reacción y servicio al cliente superior. Con una fuerza Juntos… Somos más grandes. Somos más fuertes.
ArvinMeritor, nuestro proceso de integración
de ingeniería considerable, ArvinMeritor sigue Somos más rápidos. Somos ArvinMeritor, y estamos
disciplinado contribuyó a que la nueva compañía
en marcha.
propulsando la innovación y la creación de productos
identificara formas de sobrepasar sus expectativas

A L’ A T T E N T I O N D E S A C T I O N N A I R E S D ’ A R V I N M E R I T O R
Le 7 juillet 2000, nous avons concrétisé notre objectif initial de 30 millions de dollars après les parties doivent découvrir de nouvelles manières
objectif de longue date en fusionnant la force, impôts. Ces économies viennent de l’adoption des plus efficaces d’agir. Et c’est exactement ce que
l’expertise et les ressources de deux leaders de meilleures pratiques et de l’élimination des redon- notre équipe est en train de réaliser.
l’industrie au sein d’une unique entité : dances dans des domaines comme les achats et la
Pour préparer le nouvel ArvinMeritor, nous avons
ArvinMeritor. Ensemble, nous apportons une plus logistique, les ressources humaines, les
créé 19 équipes d’intégration qui se sont réunies
value extraordinaire à nos employés, clients et équipements, la finance et la production. De
une fois par semaine bien avant la fusion de Juillet.
actionnaires. Avec une forte équipe de manage- nombreuses opportunités nous sont encore offertes
Les leaders des équipes reportent directement à
ment, nous abordons le futur avec les forces dans certaines unités commerciales pour diminuer
nous deux. Ces 400 collaborateurs très dévoués
combinées de nos meilleurs technologies, les coûts et nous nous attendons à réduire nos
sont non seulement chargés de définir les objectifs
systèmes, savoir faire et employés. charges de 100 millions de dollars avant impôts
à long et à court termes pour toute l’entreprise,
d’ici 2003.
Ensemble, nous sommes plus mais ils ont aussi la responsabilité d’éliminer le
grands. Plusieurs facteurs industriels dans le quatrième gaspillage, les redondances et la duplication des
Avec un chiffre d’affaire pro forma de 7.7 milliards trimestre ont contribué significativement aux efforts. De plus, ils sont chargés de développer une
de dollars pour l’année fiscale 2000 et un large résultats décevants de l’année fiscale 2000 comme vision et un sens communs pour la nouvelle entité.
portefeuille de produits, ArvinMeritor fournit des la forte réduction de la production de camions Entièrement responsabilisées, ces équipes
systèmes, des modules et des composants sur la classe 8- commerciaux, l’affaiblissement de travaillent en étroite collaboration avec des experts
quasi totalité des véhicule en circulation l’après-vente pour les véhicules légers, un Euro en intégration et elles suivent leurs progrès en
aujourd’hui. Mais par dessus tout, nous avons faible et l’interruption en Amérique du nord des temps réel à l’aide d’un nouvel outil d’intégration
ensemble la diversité, l’équilibre, l’étendue de programmes de production automobile. basé sur le Web.
capacités nécessaires pour créer un avantage
Avec de formidables enjeux a venir, ArvinMeritor Le changement est un vecteur d’innovation. Au fur
compétitif soutenu.
aborde le 21ième siècle avec confiance afin de et à mesure que nous avançons, l’organisation
Ensemble, nous sommes plus forts. fournir une valeur sûre à nos actionnaires : d’amélioration continue d’ArvinMeritor – un groupe
Uni, ArvinMeritor possède l’expertise en ingénierie et • en se focalisant sur nos compétences clé qui réfère directement au Vice-Président –
en technologie et les capacités de gestion de projet fondamentales et en nous séparant prudemment assurera l’analyse et la mise en place continuelle
pour développer de nouveaux systèmes et produits. des fonctions non essentielles ; des meilleures pratiques et synergies. Il est aussi
Nous avons la capacité d’évoluer rapidement lorsque • en générant du cash par une efficacité de la responsabilité de ce groupe de promouvoir
des opportunités de croissance se présentent. Nous opérationnelle ; partout au sein de la compagnie des standards de
maintenons notre engagement à une croissance de • en fournissant un taux de retour sur performance agressifs, tels que le système de
10%, ainsi qu’à une croissance annuelle de nos gains investissement au-dessus de la moyenne. performance ArvinMeritor (AMPS), qui est basé sur
par action de 15 à 18%. Nous projetons d’atteindre le puissant Système de Production Qualité Totale
Nous continuerons aussi nos efforts implacables de
ces objectifs grâce à une augmentation de notre (ATQPS - Arvin Total Quality Production System).
réduction des coûts fixes avec des stratégies telles
marge au moyen de nouveaux produits à forte valeur
que la sous-traitance des produits non essentiels, la L’avenir nous appartient : Regarder
ajoutée et d’initiatives majeures de réduction des
mise en place d’une infrastructure aux coûts bas, la vers l’avant
coûts.
rationalisation et la consolidation des biens, L’histoire d’ArvinMeritor est une histoire de
Ensemble, nous sommes plus l’amélioration de la productivité de la main d’œuvre croissance fondée sur des systèmes intégrés et
rapides. et de la rotation des stocks. des solutions modules qui vont augmenter notre
ArvinMeritor a les ressources pour fournir en contenu par véhicule et nos parts de marché.
ArvinMeritor vise aussi des améliorations de
permanence des solutions rentables et pour livrer Ensemble, nous avons une équipe de direction
revenu pour rapporter 450 millions de dollars
rapidement nos clients dans le monde entier. expérimentée,des liens forts avec nos clients
supplémentaires d’ici 2004. Ces nouvelles opportu- globaux ainsi que la force financière pour profiter
Parce que le nouvel ArvinMeritor est plus grand, nités de marché proviennent de la fusion et sont des opportunités d’une industrie en phase de
plus fort et plus rapide, nous sommes en bonne incrémentales, n’étant pas auparavant viables pour consolidation.
voie pour devenir le fournisseur incontournable de chacune des entreprises opérant séparément.
l’industrie automobile mondiale. Nous allons poursuivre notre effort sur la gestion du
Élargir le potentiel : Se mettre en cash ainsi que la communication de nos méthodes
Résultats financiers pour l’année marche de management. Les bonus de performance et les
fiscale 2000 Nous savons que le nouvel ArvinMeritor ne peut rétributions vont continuer à être fortement liés à
Durant les six premiers mois, la plupart de nos réussir que si nous travaillons ensemble et créons nos objectifs.
activités ont bénéficié d’un marché fort. une équipe dynamique. C’est ce que nous faisons
Cependant pour le reste de l’année, nous avons grâce au talent et aux efforts dévoués de nos Renforcés par notre position financière, le nouvel
fait face à des événements engendrés par des employés. En plus d’avoir atteint et dépassé la ArvinMeritor va croître de manière interne ainsi que
conditions qui ont affecté l’industrie entière. Nos plupart de nos objectifs de synergie, nous avons par des partenariats soigneusement choisis.
revenus pro forma nets pour l’année fiscale 2000, aussi simplifié et standardisé les systèmes et
Nous nous engageons à être le leader dans cette
à l’exception des évènements spéciaux, étaient processus dans des domaines qui ont un impact
économie ultra-compétitive. D’abord et surtout,
de 254 millions de dollars, c’est à dire 9% sur l’organisation entière, comme la qualité, la
nous nous engageons à procurer un bénéfice à
inférieurs à ceux de 1999. Ramenés en gain par technologie de l’information, la finance, les achats
long terme à nos employées, clients et actionnaires.
action, ils représentaient $3.56 comparés à $3.66 et les opérations.
Avec votre encouragement et votre soutien
pour l’année précédente.
Nous avons aussi identifié de nombreuses et permanents, nous réaliserons ceci par la recherche
Nos initiatives agressives pour réduire les coûts nouvelles opportunités de marketing. Certaines d’une croissance agressive en améliorant notre
ont pour but de fournir une meilleure rentabilité d’entre elles, comme nos stratégies de châssis et expertise en technologie et ingénierie, et en
financière et de se construire une position de « corner module », sont le résultat de l’association maintenant une activité à la fois forte et souple.
fournisseur de premier rang. Pour cela, nous des produits Arvin et Meritor dans une solution
Nos hommes et femmes ont travaillé très dur pour
devons anticiper et répondre rapidement aux intégrée. Nous utiliserons aussi l’expertise d’Arvin en
faire de cette année une des années les plus
changements économiques. C’est pourquoi nous technologie d’échappement pour véhicules légers
mémorables. Par « nos hommes et nos femmes »,
nous efforçons d’aligner notre structure de coûts afin de développer des solutions d’échappement et
nous entendons tous les employés dévoués
aux conditions du marché actuel : d’émission pour camions utilitaires, marché où
d’ArvinMeritor venant du monde entier qui créerons
• par une réduction des investissements ; Meritor a traditionnellement une position clé.
par leur enthousiasme cette nouvelle compagnie.
• par une intervention sur chaque opportunité afin
Notre expertise technique nous a conduit à une C’est une réussite extraordinaire dont nous
d’améliorer notre efficacité d’exploitation ;
réponse et un support client supérieurs. Avec une pouvons être extrêmement fiers.
• par un ajustement à la baisse de nos ressources
considérable force de développement, ArvinMeritor .
humaines ;
Ensemble… Nous sommes plus grands. Nous
continue à propulser l’innovation ainsi que des
• par une restructuration des opérations du
sommes plus forts. Nous sommes plus rapides.
produits qui développent des technologies
groupe; et
avancées et accessibles pour l’industrie automobile.
• par une consolidation des installations
industrielles dans le monde entier.
Sur la ligne de départ : Tirer parti
du changement
Durant les cent premiers jours d’ArvinMeritor, notre
L’intégration des opérations d’ArvinMeritor est un
processus d’intégration a permis à notre nouvelle
exemple où des défis sont transformés en
compagnie de dépasser de 33% les objectifs 2001
opportunités. Diriger avec succès un processus
de réduction de coûts par synergie. Nous avons
d’intégration dépend de la qualité de l’engagement
déjà identifié 40 millions de dollars d’économie
et du travail d’équipe vers un but commun. Toutes
après impôts, chiffre nettement plus élevé que notre

PARA OS ACIONISTAS DA AR VINMERITOR
Em 7 de julho de 2000, cumprimos o nosso líquidos. Esta economia virá através da adoção de desafios em oportunidades. A administração de
objetivo de unir a força, a habilidade e os melhores práticas e eliminação da duplicação, onde um processo de integração com sucesso
recursos de dois líderes da indústria em uma possível, incluindo áreas tais como aprovisionamento depende da maneira como as pessoas se
empresa, criando assim a nova ArvinMeritor. e logística, recursos humanos, instalações, finanças engajam e trabalham em conjunto para atingir
Juntos, proporcionaremos um valor extraordinário e manufatura. Ainda há mais oportunidades para a uma meta comum. Todas as partes devem
aos nossos funcionários, nossos clientes e economia significativa de custos através das descobrir maneiras novas e mais eficazes de
nossos acionistas. Com nossa forte equipe de unidades comerciais, em que esperamos equilibrar realizar as coisas. E isto é exatamente o que
liderança, caminhamos em direção ao futuro US$ 100 milhões em custos brutos até 2003. nossa equipe está fazendo.
reunindo as forças de nossas melhores
Vários fatores negativos da indústria no quarto Para promover a nova ArvinMeritor, estabelece-
tecnologias, sistemas, práticas e profissionais.
trimestre contribuíram significativamente para os mos 19 equipes de integração que começaram a
JUNTOS, SOMOS MAIORES. resultados decepcionantes do exercício de 2000, reunir-se semanalmente bem antes da fusão em
Atingindo US$ 7,7 bilhões em vendas pro forma no inclusive o abrandamento substancial na julho. Todas as semanas, os líderes das equipes
exercício de 2000, a carteira bastante ampla de produção de caminhões comerciais Classe 8 na apresentam os relatórios diretamente para nós.
produtos da ArvinMeritor oferece-nos, atualmente, América do Norte, o enfraquecimento nas vendas Estes 400 integrantes das equipes, altamente
a capacidade de suprir sistemas, módulos e de mercado em substituição aos veículos leves, o dedicados, não somente são encarregados de
componentes para praticamente qualquer veículo. enfraquecimento do euro e as interrupções na determinar os objetivos a curto e longo prazo
Acima de tudo, juntos, possuímos diversidade, programação da produção automotiva para toda a empresa, mas também são
equilíbrio e variedade de capacidades para adquirir norte-americana. responsáveis por eliminar o desperdício,
uma vantagem sustentável e competitiva. sobreposição e repetição de esforço. Alem disso,
Com uma tarefa difícil a cumprir, a ArvinMeritor são encarregados de desenvolver uma visão
JUNTOS, SOMOS MAIS FORTES. entra no século XXI confiante de que nós conjunta e um propósito para a nova venture.
Combinada, a ArvinMeritor possui perícia em proporcionaremos um valor significativo para Totalmente responsáveis, as equipes trabalham
engenharia e tecnologia, bem como a nossos acionistas através de: de forma integrada com peritos e acompanham
capacidade de administração de programas para • Centralização em nossas competências seu progresso em tempo real em uma nova
desenvolver novos sistemas e produtos, além da principais e delegação prudente de diversas ferramenta de integração baseada na Web.
capacidade de adaptar-se rapidamente diante de funções menores;
oportunidades significativas de crescimento. • Geração de capital através de excelência A mudança propicia o catalisador para a
Temos o nosso compromisso de oferecer um operacional; inovação. Conforme avançamos, a organização
crescimento topo de linha de 10%, além de • Investimento na empresa aplicando-se de contínuo aperfeiçoamento ArvinMeritor – um
aumentar nossos rendimentos por cota em 15 a tecnologias avançadas para nossos clientes; e grupo-chave que apresenta relatórios
18% anualmente em relação ao ciclo de • Oferecimento de uma taxa de restituição no diretamente para o vice-diretor – assegurará o
negócios. Pretendemos atingir esses objetivos capital investido acima da média dos grupos exame contínuo e implementação das melhores
basicamente através do aumento da margem, de parceiros. sinergias e práticas identificadas. Também é
direcionada por novos produtos de valor superior responsabilidade deles promover padrões
Porém, continuaremos nossos esforços
e iniciativas agressivas para redução de custo. agressivos de desempenho através da empresa,
implacáveis para reduzir os custos fixos, com
tais como o Sistema de Desempenho
JUNTOS, SOMOS MAIS RÁPIDOS. estratégias como, por exemplo, terceirização de
ArvinMeritor (AMPS), que é baseado no Sistema
A ArvinMeritor tem recursos para providenciar produtos secundários; estabelecimento de uma
de Produção de Qualidade Total Arvin (ATQPS).
soluções contínuas e lucrativas e para oferecê-las infra-estrutura de baixo custo; racionalização e
a nossos clientes da forma mais rápida, em consolidação do ativo; e melhora da produtividade OBSERVE-NOS: PENSAMOS NO
qualquer lugar em que eles estejam. elaborada e rotatividade de estoque. FUTURO
A história da ArvinMeritor é uma história de
Por ser maior, mais forte e mais rápida, a A ArvinMeritor ainda tem por objetivo aumentar a crescimento com sistemas integrados e soluções
ArvinMeritor está a caminho de tornar-se o receita para oferecer mais US$ 450 milhões em modulares que deverão aumentar nossa
fornecedor número um para a indústria global de vendas até 2004. Estas novas oportunidades de capacidade por veículo e nossa cota no
veículos automotores. marketing foram criadas pela fusão e representam mercado. Juntos, temos uma equipe de
acréscimo, não sendo anteriormente viável para administração experiente e fortes relações com
RESULTADOS FINANCEIROS PARA
nenhuma companhia individualmente. os clientes, aliada a uma força financeira para
O EXERCÍCIO DO ANO 2000
tirar vantagem de oportunidades em uma
Durante os primeiros seis meses, a maior parte dos EXPANDIR O POTENCIAL:
indústria que está se tornando sólida.
negócios se beneficiou através de mercados fortes. ENGRENAGEM
No entanto, no restante do ano, enfrentamos muitos Nós sabemos que a nova ArvinMeritor somente
Nós continuaremos a demonstrar nossa forte
desafios que foram reproduzidos por condições que vai ter sucesso se trabalharmos em conjunto e
ênfase na administração de capitais, assim como
afetaram toda a indústria. Nossa renda líquida pro criarmos uma equipe dinâmica. Graças ao talento
comunicar nossa abordagem de administração. A
forma no exercício de 2000, excluindo os itens e esforços dedicados de nossos profissionais,
remuneração e incentivos ao desempenho
especiais, foi de US$ 254 milhões, 9% abaixo do estamos fazendo exatamente isso. Além de
continuarão intimamente ligados a nossas metas.
valor pro forma de 1999, excluindo-se os itens satisfazer e exceder muitas de nossas metas de
especiais. Em uma base diluída, os ganhos sinergia, também aerodinamizamos e Reforçado por nossa posição financeira combina-
relacionados por cota foram de US$ 3,56, compara- padronizamos os sistemas e processos em áreas da, a nova ArvinMeritor planeja crescer
dos a US$ 3,66 por cota há um ano. que causam impacto em toda a organização, tais organicamente, bem como através de parcerias
como qualidade, tecnologia da informação, cuidadosamente planejadas. Temos o compro-
Nossas medidas agressivas para baixar os custos
finanças, aprovisionamento e operações. misso de liderar o pacote nesta economia alta-
concentram-se basicamente em oferecer um
mente competitiva e direcionada aos valores.
desempenho financeiro aprimorado e construir Identificamos, ainda, novas e interessantes
Primeiramente, temos o compromisso de
uma posição mais forte como o fornecedor global oportunidades de marketing. Algumas delas, tais
oferecer um valor a longo prazo para nossos
de Tier One. Para este fim, devemos prever e como estratégias de módulos especulativos e de
funcionários, para nossos clientes e para nossos
responder rapidamente a mudanças econômicas. estrutura, combinam diversos produtos Arvin e
acionistas. Com nosso constante incentivo e
É por isso que estamos fazendo um esforço Meritor em uma solução integrada. Nós ainda
apoio, isto será feito através da busca por um
considerável para alinhar nossa estrutura de cus- impulsionaremos a tecnologia de escape de
crescimento de topo e base de linha, aumentan-
tos com as condições atuais de mercado para: veículos leves da Arvin para desenvolver soluções
do nossa perícia em tecnologia e engenharia,
• Reduzir o gasto de capital; de escape e emissão para caminhões comerciais
bem como mantendo a empresa forte e
• Atuar em cada oportunidade para melhorar a – um mercado onde a Meritor tradicionalmente
dinâmica.
eficiência operacional; mantém posições de liderança de mercado.
• Diminuir nossa força de trabalho assalariada;
Nossos profissionais trabalharam muito para
Nossa habilidade técnica direciona o serviço de
• Reestruturar as operações da empresa; e
tornar este ano memorável. Quando dizemos
atendimento a clientes e receptividade superior.
• Modernizar e consolidar as instalações de
“nossos profissionais”, referimo-nos a todos os
Com uma força de engenharia considerável, a
fabricação no mundo.
dedicados funcionários ArvinMeritor que se
ArvinMeritor continua a impulsionar inovações e
reuniram, vindos de toda parte do mundo para
Durante os primeiros 100 dias de ArvinMeritor, descobertas de produtos para desenvolver
criar, com entusiasmo, uma nova empresa. Esta é
nosso processo de integração disciplinada ajudou tecnologias avançadas e viáveis para a indústria
uma realização extraordinária, da qual podemos
a nova empresa a identificar os meios para global de veículos motores.
nos orgulhar profundamente.
exceder em 33% suas expectativas iniciais das
NA LINHA INICIAL: A VANTAGEM
metas de sinergia econômica para 2001.
Juntos… somos maiores, somos mais fortes,
DE UMA MUDANÇA
Identificamos US$ 40 milhões em economia
somos mais rápidos, somos ArvinMeritor e
A integração de operações ArvinMeritor propor-
líquida até o momento – valor significativamente
estamos crescendo.
ciona uma plataforma sólida para transformar
superior à meta original de US$ 30 milhões

TRANSLATIONS

ongoing examination and implementation of the identified best
practices and synergies. It is also their responsibility to push
aggressive performance standards throughout the company, such
as the ArvinMeritor Performance System (AMPS), which is based
on the Arvin Total Quality Production System (ATQPS).
WATCH OUR DUST: LOOKING AHEAD
The ArvinMeritor story is a growth story with integrated systems and
modular solutions that should increase our content per vehicle and
grow market share. Together, we have an experienced management
team, strong relationships with global customers and the financial
strength to take advantage of opportunities in a consolidating industry.
We will continue to demonstrate our strong emphasis on cash
management, as well as to communicate our management
approach. Performance incentives and compensation will continue
to be closely tied to our goals.
Strengthened by our combined financial position, the new
ArvinMeritor plans to grow organically, as well as through carefully
targeted partnerships. We are committed to lead the pack in this
We continue to win new
highly competitive, value-driven economy. First and foremost, we are
contracts as a result of our
committed to delivering long-term value to our employees, to our
ability to provide integrated
customers and to our shareowners. With your ongoing encouragement
systems-based solutions
and support, we will do this by pursuing top- and bottom-line growth,
and new products to
by enhancing our expertise in technology and engineering, as well as
address complex issues.
by maintaining a business that is strong and agile.
Our people have worked very hard to make this year one of the
most memorable ever. By “our people,” we mean all of those
dedicated ArvinMeritor employees who have come together from
all around the world to enthusiastically create a new company.
This is an extraordinary accomplishment — one of which we all
can be extremely proud.
Together . . . We’re bigger. We’re stronger. We’re faster.
We’re ArvinMeritor, and we’re on the move.
Sincerely,
Larry Yost Bill Hunt
Chairman Vice Chairman
Chief Executive Officer President
December 6, 2000
5

EMERGING INDUSTRY ARVINMERITOR
TRENDS STRATEGIES
Globalization Leverage Our Combined Strength
Original equipment manufacturers (OEMs) are expanding to As a result of the premium-free merger, ArvinMeritor is a $7.7-billion
serve both current and emerging global markets. They are global supplier. By combining our resources, strategic partnerships
choosing suppliers with matching global capabilities. and talent, we have the geographic and financial scope and scale to
These suppliers must provide state-of-the-art technology invest in the development of advanced technologies. With more
and engineering capabilities, as well as integrated system than 150 manufacturing facilities around the world, we work where
solutions and seamless customer service. our increasingly global customers need us. Our newly combined
engineering team capitalizes on an unmatched ability to meet
customers’ fast-changing technology needs. Joining forces has
greatly extended our ability to engineer full-system solutions and
opens previously untapped pathways to a new range of customers.
Consolidation Improve Our Business
The changing automotive industry is composed of a shrinking The ArvinMeritor Performance System (AMPS) enables us to lower
number of “mega-suppliers.” Customers are cutting supplier costs and ensure top quality and delivery, as we compress product-
lists and relying on only those who are the most competent, development cycles with our Concept to Customer process. We also
efficient, focused and agile. In this dynamic environment, are investing in improved business and information systems to make it
suppliers must anticipate customer needs to provide integrated easier to do business with us. We’ve applied a number of aggressive
systems and innovative solutions. Only the most trusted partners — business development initiatives, including layered manufacturing
those who can be counted on to constantly supply the highest capacity; supply-base consolidation; streamlined distribution and
quality products and deliver the most value at the best price — logistics systems; and lean manufacturing. We also have increased
will survive. commonality of products and material source integration. Finally, to
strengthen our market positions, we continue to pursue strategic
alliances and customer relationships worldwide.
Engineering and Technology Bring Together Best Practices
Automotive industry consolidation drives customer demand for The ArvinMeritor merger produces a blend of best practices that
technology-enhanced modules and fully integrated systems, would be virtually impossible in either organization operating alone.
rather than discrete parts. For OEMs, that translates into reduced The combined enterprise has the complementary technology to
costs, shorter assembly time, higher quality and more durable deliver a number of innovative applications to the world’s major
products. For suppliers, it means working closely with OEMs to automakers, including complete undercarriage offerings; upper
combine individual components into innovative modular units or corner and cross car modules; and a first-of-its-kind titanium
systems solutions. Winning suppliers must think of themselves as exhaust system. In addition, we are leveraging industry-leading
system integrators, rather than as parts manufacturers. light vehicle exhaust technology for the commercial truck market.
On site with OEMs or at one of our global centers of expertise,
engineering teams work closely with customers to meet their
needs and deliver quality systems solutions.
E-Commerce Take Advantage of Change
The Internet is rapidly changing the way the world conducts As an industry leader, we know the potential value that
business. In the automotive industry, many new electronic e-commerce can bring to the overall efficiency of the supply
options are causing players to re-examine the fundamentals of chain. That’s why ArvinMeritor has a number of Web-enabled
supply chain management. Suppliers are beginning to realize initiatives in place and under development, including an online
benefits from e-commerce, including the ability to lower costs customer catalog and ordering system to speed turnaround time.
faster than prices; shorten time to market through compressed ArvinMeritor also was the first supplier to participate in Covisint,
processing time; and reduce inventory. E-commerce also a Web-based supply exchange sponsored by global automakers.
automates and simplifies procurement transactions, while The company serves on Covisint’s Customer Advisory Council
boosting accuracy and response time. and was the first supplier to conduct cost-efficient, online
auctions for global procurement.

LIGHT VEHICLE SYSTEMS
APERTURES AND UNDERCARRIAGE
The ongoing quest of this business is to become the integrator of
choice among the world’s automakers. Our pursuit is focused on four
primary initiatives: passion for customers, innovative technologies,
lean operations and global reach. All have contributed to positioning
the business for significant growth over the next five years.
WHO WE ARE . . .
LVS has leading market positions in both apertures and
undercarriage, with an estimated $2 billion in revenue in fiscal
year 2000. Apertures include engineered products, such as
sunroofs and roof systems, window regulators, latch systems,
gas springs and integrated door modules. Undercarriage
addresses vehicle ride control, safety and styling. Products
include shock/strut components and modules, suspension
systems and steel wheels.
WHAT WE’VE DONE . . .
During fiscal year 2000, the ArvinMeritor merger brought
T H E N Our business success is based on an unparalleled together complementary technologies. That, in turn, has
record of dependability and high-value delivery solutions. accelerated our ability to be a major force in such areas as
chassis systems and corner modules.
Working closely with customers, LVS responds to
NOW
increasing demand for integrated components and
An intense focus on customer advocacy is embedded into our
systems for light vehicles.
business culture. We continually examine customer concerns and
S O O N Expanding global markets — especially in Europe and needs, in order to meet them each day.
South America — hold significant growth opportunities
for providers of well-engineered, customer-focused
WHERE WE’RE GOING . . .
products. LVS is ready.
A heritage of innovation — along with added post-merger size and
scope — promises to pay growth dividends in a number of areas.
We will:
• Raise the bar and excite customers with our industry-leading
door module technology. We can fully integrate LVS products,
such as power window regulators, latches and electronics.
• Develop access control technologies, such as the signature-
feel door opening, which is winning new business and drawing
wide interest from major vehicle builders.
• Actively pursue original equipment (OE) manufacturer awards
for corner modules (shown at right) and chassis systems. We
are pursuing numerous other growth areas, such as expanded
applications of sunroofs in light trucks and the continued
globalization in Europe and South America.
7

The ArvinMeritor merger LVS initiatives in lean
broadens an already extensive processes and
LVS portfolio of technologically measurement-based
advanced aperture and quality systems are
undercarriage systems. paying off in operational
excellence and
recognized by key
customers such
as DaimlerChrysler
and General Motors.
“We are intensely customer-focused. That obsession fuels
our drive to become the global integrator of choice.”
— Terry O’Rourke, president, LVS
“Other suppliers may talk about high-quality
and lean manufacturing. We deliver.”
— Craig Stinson, president, Exhaust

EXHAUST SYSTEMS
This business is leveraging our core competencies around the
world to not only maintain our long-standing position as an industry
leader, but also to apply our capabilities to engineering innovations,
premium products and expanded market opportunities.
WHO WE ARE . . .
LVS Exhaust Systems is a world-leading automotive exhaust
supplier. Our success is based on an unparalleled record of
dependability, delivery, value, quality and waste elimination.
WHAT WE’VE DONE . . .
Last year brought a number of noteworthy developments, including
the launch of our new air-to-air service (Air2Air), which expands our
focus to a full-air systems approach and leverages Purolator™ air
induction technology and noise/vibration/harshness expertise.
Also, the strength of our partnerships with Germany’s Zeuna Stärker
and Japan’s Sango became increasingly evident. New business
We will continue opportunities stem from our common vision and joint strategy.
to leverage our
Further, the establishment of a Research and Innovation (R&I) team
sunroof and roof
provides the framework from which to expand the business into
module technology
potential new markets. This initiative applies our core capabilities
to lead the industry
and technology network to new products and emerging
trend toward
technologies within, as well as outside the automotive industry.
integrated full roof
opening systems.
Finally, our global Commercial Vehicle Systems exhaust team
migrates experience and know-how from the passenger vehicle
segment to address the needs of the commercial truck market.
WHERE WE’RE GOING . . .
In addition to being a leader in OE exhaust systems, we are
well-positioned to reinforce a full-systems, full-service reputation
with vehicle builders around the world. As a result, our Exhaust
Systems business is poised to expand into new segments.
Although in its infancy, Air2Air brings light vehicle OE customers
an optimized approach to air systems management.
Finally, growth driven by our partnerships is accelerating and shows
great promise. Leveraging our capabilities and know-how through
the R&I initiative provides an optimistic charter for expansion.
10

COMMERCIAL VEHICLE SYSTEMS
ORIGINAL EQUIPMENT
ArvinMeritor’s Commercial Vehicle Systems (CVS) continues to
strengthen our position as a worldwide leader in commercial
vehicle drivetrain systems and components for the original
equipment (OE) market. We’re doing that by further expanding
and refining our product portfolio as we leverage global
production, supply and service resources.
The ongoing CVS strategy positions our operations to capitalize
on the global consolidation of commercial truck and trailer
manufacturers and suppliers and the increasing globalization of
the industry. CVS also fills the growing need for technologically
advanced suppliers who can provide complete systems from a
single source.
WHO WE ARE . . .
CVS is a $2.4-billion business with operations that are complemented
by joint ventures in every major region of the world. We supply a
complete range of drivetrain systems and components for medium-
and heavy-duty trucks, trailers, off-highway equipment and specialty
T H E N CVS is well-positioned to capitalize on industry trends
toward consolidation and globalization. vehicles. In Europe and North America, CVS is a market leader in
virtually every segment we supply, and we are supported by an
The new, fully automatic Meritor ® Tire Inflation
NOW
unmatched sales, service and technical support network.
System by PSI (shown at far right) is just one
example of how CVS technology responds to
In 2000, the RHP Highway Parallelogram system — winner of the
trailer customer needs.
1999 PACE™ (Premier Automotive Suppliers’ Contributions to
S O O N As a result of strategic alliances and acquisitions, a Excellence) Award — was adopted as standard equipment by
wider CVS portfolio will provide customers with a Wabash National Corporation, a world leader in trailer manufacturing.
one-stop source for technologically advanced solutions.
WHAT WE’VE DONE . . .
ArvinMeritor’s tradition of market leadership through innovation
continued through the year, with the introduction of a number of
new products. Two of these are:
• FreedomLine™ — A revolutionary transmission system that
eliminates the clutch pedal. Fully automated, it electronically
synchronizes engine and road speed to provide a smooth
electronic shift.
• Drive Axles with Unitized Wheel Ends — Integrates the
bearing seals into a hub “package,” eliminating one more
assembly step by the vehicle manufacturer. With improved
quality and reliability, the new, leak-free package joins the
popular wheel-end maintenance-free technology of CVS
steer and trailer axles.
11

Significant business awards during the year include a multi-year
supply contract for axles, cam and hydraulic disc brakes, hubs,
drums and ABS with the Blue Bird Corporation. Blue Bird is a
leading manufacturer of school buses, commercial buses and
motor coaches. We have also taken a number of cost-reducing
steps during the year to further strengthen our ability to compete
in an extremely demanding marketplace.
WHERE WE’RE GOING . . .
The global commercial vehicle industry is undergoing significant
change. That change includes a decreased demand in North
America and further industry consolidation. It also includes
vehicle manufacturers’ increased insistence that suppliers be
globally based, one-stop sources for complete systems.
ArvinMeritor is well-positioned to respond successfully to
these challenges:
• CVS product and geographic diversity provides the
stability and financial strength to balance depressed
market conditions. While the market is softening in North
America, demands by our European customers keep
FreedomLine’s on-board computer
the company’s plants in that region operating at capacity.
automatically selects and shifts
And, while OE production has fallen, the demand for CVS
gears, based on load and driving
aftermarket products has risen.
conditions, providing a smooth
• Aggressive cost-reduction measures, including plant
electronic shift. The result is restructuring and resource rationalization targeted for 2001,
improved fuel economy, reduced are supporting margin targets during market shifts.
• The CVS strategy moves beyond components to modules and
driver fatigue and increased safety.
systems, providing ArvinMeritor OE and end-user customers
with a one-stop source for critical, technologically advanced
drivetrain solutions.
• With our global reach — extended by the resources added
through the ArvinMeritor merger — CVS can draw on
manufacturing, technical and service resources in virtually
every major region of the world.
• ArvinMeritor’s broadly based technical expertise is focused
on developing technologically innovative new components,
modules and systems to meet customer needs. We intend to
provide these high-quality components and systems at the
lowest, most competitive cost.
With our well-established lines of hydraulic disc brake systems,
ABS, and steer and drive axles, CVS is poised to make major
inroads in a promising, emerging market driven by the needs
of e-commerce for local and urban delivery vehicles. In this
environment, the demand for smaller, light-medium to medium-
duty trucks will grow. CVS will be ready.
13

Driver-friendly Safety advances such as Electronic CVS Drive Axles with
developments like Stability Control and ABS combine Unitized Wheel Ends are
the clutch-free with weight-reducing drivetrain virtually maintenance-free
FreedomLine advances such as SteelLite X30™ and allow operators to
transmission help brake drums help reduce customer increase payload by
the trucking industry operating costs. reducing system weight.
meet the growing need
for qualified drivers.
“We listen to our customers and respond to
their needs — to the people who build the
trucks and the people who use the trucks.”
— Tom Gosnell, president, CVS

We provide more than The development of an Internet-accessible,
100,000 products to the electronic catalog strongly positions
aftermarket with a the business in the industry’s
multi-channel, international fastest-growing distribution dynamic.
logistics organization.
“Our broad aftermarket product portfolio and efficient
delivery make it easy to do business with us.”
— Tom Gosnell, president, CVS

AFTERMARKET
With a global strategy to expand product offerings, grow distribution
networks and increase attendant services, ArvinMeritor’s commercial
vehicle aftermarket is committed to being an indispensable factor in
our customers’ prosperity.
WHO WE ARE . . .
Commercial Vehicle Systems (CVS) has long been recognized as
the premier supplier of replacement components for commercial
vehicles. Further, during the past four years, CVS aftermarket has
secured an international presence, offering the broadest product
portfolio in the industry.
WHAT WE’VE DONE . . .
In fiscal year 2000, we continued a strategy of expanding our
addressable market. Here are some highlights:
• The integration of the Euclid acquisition, finalized in 1999, is
now complete. We are positioned to further advance the
brand’s strong loyalty.
• The launch of a European headquarters and warehousing
We’ve made industry-leading
distribution center provides the infrastructure we need
strides in the remanufacture of
to become a premier supplier and partner in that region
various components, adding to
of the world.
product breadth and depth at
• An earlier strategic marketing alliance with Pressure Systems
lower price points.
International positions us as an exclusive distributor of one
of the industry’s most advanced automated tire inflation
systems for new and aftermarket vehicles.
• Through the ArvinMeritor merger, we are migrating exhaust,
filter and shock technologies, as well as strong brand
names and expanded geographic reach to the commercial
vehicle aftermarket.
WHERE WE’RE GOING . . .
Over the past year, we’ve experienced a North American
growth rate of 13 percent. Moving forward, forecasts point
to significant growth in the overall commercial vehicle
replacement parts market, with especially bright spots in
Mexico and South America.
The combination of decreasing new commercial vehicle
production, the business’ expanding accessible market, a
growing product portfolio and enhanced service offerings
point to significant growth and strong profits in the coming
year. Over the next four to five years, our continued strategy
of expansion is expected to double the size of our business.
16

LIGHT VEHICLE AFTERMARKET
With revenue of nearly $1 billion and a well-established global
customer base, ArvinMeritor’s Light Vehicle Aftermarket (LVA) is well-
positioned in a tightening marketplace that is marked by customer
consolidation and longer original equipment (OE) life cycles.
WHO WE ARE . . .
LVA is a leading supplier of aftermarket exhaust systems; ride control
products; and air, oil and fuel filters. We provide customers with
some of the best-known brand names in North America and Europe.
WHAT WE’VE DONE . . .
Throughout fiscal year 2000, we took important measures to
continue increasing our global presence. We stepped up efforts to
partner with strategic customers, launch new products, increase
premium product sales and grow our global alliances.
Strategic highlights included:
• The Toyota Quality Alliance recognizing our OE filtration systems
with the Gold Award for product excellence, service and support;
• Contracting to supply AC Delco shock absorbers to General
T H E N We set the industry standard by delivering our Motors service outlets around the world;
customers a 99-percent order fill rate. • Expanding our sales of Metal Cat, a premium catalytic converter
in Europe; and
We are industry leaders in service and quality.
NOW
• Developing a premium shock absorber for the North American
performance and sport utility vehicle markets.
S O O N The new year holds real opportunity to boost sales,
increase market penetration and improve margins.
WHERE WE’RE GOING . . .
LVA continues to focus on increasing margins in shrinking
markets. Gains will be based on our tradition of fast, flexible
and reliable customer service, plus ArvinMeritor’s inherent
quality, market coverage and brand strength. A growing
e-commerce capability will further enhance our service, delivery
and business performance.
We also are expanding product offerings through internal
development, including the introduction of premium
replacement filters and shock absorbers in 2001 and
through acquisitions, strategic partnering and alliances.
Opportunities to expand into new markets — most notably South
America and Asia/Pacific — are rapidly developing. We’re also
extending our exhaust, ride control and filter product lines into the
$1-billion commercial vehicle market, which until the merger had
not been feasible. All of these measures are planned to offset the
current market conditions in North America, while at the same time
positioning LVA to grow in the global aftermarket segment.
17

In 2000, LVA launched an We have expanded Our manufacturing
Internet-based, business-to- business with our alliance with Midas
business portal to streamline strategic partners, holds significant
customer service. Visit us at Advance Auto Parts; potential for growth.
http://armlva.arvinmeritor.com AutoZone™; Discount
Auto Parts; Kwik-Fit™;
Meineke; Midas;
Texaco; and Pennzoil
Quaker State to
address the growing
retail market.
“Outstanding service is critical to customers.
That’s our competitive advantage.”
— Dan Daniel, president, LVA

OTHER (COIL COATING)
As a principal supplier to a growing $1-billion market,
ArvinMeritor’s coil coating business is taking a number of
aggressive steps toward our goal of being the logical choice
for innovative pre-painted coating solutions.
WHO WE ARE . . .
ArvinMeritor’s Roll Coater operations are the largest steel coil
coater in the world, coating enough steel in one year to circle
the globe four times. As the leading coil coater for the North
American home appliance industry, revenue has doubled in
the last 10 years.
WHAT WE’VE DONE . . .
During fiscal year 2000, we reorganized operations to improve
processing consistency, customer service, project management
and inter-functional coordination. We also have completed the
integration of the state-of-the-art Hawesville, Kentucky,
production facility acquired from WorldSource Coil Coating, Inc.
in early 1999.
This year, Don Ebert, who guided Roll Coater through its
T H E N Roll Coater has posted a compounded annual growth
remarkable period of growth, retired after 37 years of service.
rate of 10.5 percent for the past five years.
A.R. Sales, former Roll Coater chief financial officer, succeeds
A business reorganization includes naming a strong
NOW
him as president.
manufacturing vice president, establishing sales and
marketing as a stand-alone function, and creating a
WHERE WE’RE GOING . . .
separate Business Operations group.
Roll Coater has set clearly defined goals to ensure continued
S O O N We will dramatically increase sales through growth and financial strength.
concentrating on process excellence, customer We intend to:
service improvements and product innovation.
• Grow the use of pre-painted steel panels in core markets, as the
quality, value and environmental advantages of the process gain
increased recognition.
• Leverage automotive opportunities in support of other
ArvinMeritor operations, such as the fabrication of roof panels.
• Penetrate the residential roofing market, as coated steel
and aluminum shingles gain acceptance as a lightweight,
recyclable alternative to asphalt shingles and other
roofing materials.
• Integrate the supply chain and expand value-added
customer services.
• Expand further into Mexico and markets in the southeastern U.S.
By taking advantage of these emerging market opportunities,
our coil coating business can further enhance its consistently
strong financial performance.
19

Roll Coater has a diversified Appointing a vice president The automotive
customer base that can help of Manufacturing ensures industry is beginning
ArvinMeritor benefit from maximum coordination and to recognize the
market fluctuations in the process consistency across quality, value and
automotive industry. all coil coating operations. environmental
advantages of coil
coating over in-house
post-painting.
“By forging close partnerships with paint manufacturers
and steel producers, we discover new applications, as well
as find better ways to leverage existing ones.”
— A.R. Sales, president, Roll Coater

2000 FINANCIAL REVIEW
Chief Financial Officer’s Review: Management’s Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Management’s Responsibility for Financial Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32
Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33
Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
Selected Financial Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52
Pro Forma Summary of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53
Pro Forma Operating Income (2)
Pro Forma Sales (1) Pro Forma Capital Expenditures
$10.0 $600 $400 $ in millions
$ in millions
$ in billions
$8.0
$300
$400
$6.0
$200
$4.0
$200
$100
$2.0
98 99 00 98 99 00 98 99 00
Affiliate Sales Other Other
Other Light Vehicle Aftermarket Light Vehicle Aftermarket
Light Vehicle Aftermarket Commercial Vehicle Systems Commercial Vehicle Systems
Commercial Vehicle Systems Light Vehicle Systems Light Vehicle Systems
Light Vehicle Systems
(1) Including affiliate sales (2) Business segment
21

CHIEF FINANCIAL OFFICER’S REVIEW
M A N A G E M E N T ’ S D I S C U S S I O N A N D A N A LY S I S
OVERVIEW AND OUTLOOK The outlook for our major served markets around
The merger of Meritor and Arvin helps to position the world is somewhat mixed. There are signs of a
ArvinMeritor as a leader within the automotive modest weakening in North American and Western
supply industry (see Notes 1 and 3 of Notes to European light vehicle production during fiscal 2001.
Consolidated Financial Statements). Our industry Within the heavy-duty commercial truck and trailer
is rapidly transforming to keep pace with the markets, we expect North American production will
globalization and consolidation of the original continue to decline 30 percent or more in fiscal
equipment manufacturers (OEMs), as well as the 2001, while European production is expected to be
continued trends towards outsourcing by the down modestly. The light vehicle replacement
OEMs and integrated systems. The increased market should remain weak over the same period.
competitive pressures and complexity of the Additionally, it is difficult to predict the impact the
industry presents suppliers with many challenges euro and other currencies will have on sales and
and growth opportunities. We believe that the operating income in the upcoming year. While we
merger of Arvin and Meritor provides enhanced remain cautious regarding the current market
financial strength, flexibility and product mix, as outlook, we will continue to drive strong financial
well as stronger customer and market positions, performance through aggressive ongoing
that enables the company to take further cost-reduction efforts, restructuring actions and
advantage of these industry trends. synergy realization programs.
The company is making excellent progress in the In addition to the progress being made by our
merger integration process. To date, we have merger integration teams, we are taking actions to
identified projected cost-reduction synergies for align our operations with the existing and
2001 of $50 million pre-tax, or $40 million anticipated declines in some of the company’s major
after-tax. This includes a $10-million annual markets. On November 8, 2000, the company
recurring reduction in income taxes, which is announced restructuring actions to realign
expected to contribute to the reduction of the fiscal operations at selected facilities around the world,
2001 effective tax rate to 35.5 percent. We are on with a total cost of approximately $90 million
schedule to increase these cost synergies to (see Note 24 of Notes to Consolidated Financial
$100 million pre-tax in 2003. Statements). The company expects these
restructuring activities to reduce operating costs by
With our newly merged company, we are even more
about $25 million in fiscal 2001, growing to
confident in our ability to meet, over a multi-year
$50 million in fiscal 2002 and thereafter.
period, our stated long-term financial goals to
deliver annual average sales growth of 10 percent We also continually evaluate other value-enhancing
and earnings per share growth of 15 to 18 percent, initiatives, such as stock repurchase programs.
while maintaining a strong emphasis on cash and During the last month of fiscal 1999 and the first two
investment grade ratios. quarters of fiscal 2000, Meritor purchased 5.1 million
shares at an aggregate cost of approximately
Our long-term goals have been established with the
$125 million, or an average of $24.51 per share.
recognition that the industry in which the company
In July 2000, ArvinMeritor announced a program to
operates has been characterized historically by
repurchase up to $100 million of the company’s
periodic fluctuations in overall demand for light,
common stock, of which 3.1 million shares had
commercial and specialty vehicles, and related
been purchased at an aggregate cost of
aftermarkets, resulting in corresponding fluctuations in
approximately $53 million, or an average of
demand for products of the company. Accordingly, the
$16.98 per share through September 30, 2000.
company will measure its performance against these
long-term financial goals over a multi-year period.
22

CHIEF FINANCIAL OFFICER’S REVIEW
M A N A G E M E N T ’ S D I S C U S S I O N A N D A N A L Y S I S (continued)
FINANCIAL CONDITION In fiscal 1999, cash used for investing activities
Our cash flow
Operating Cash Flow — included capital expenditures of $170 million and
from operations was $228 million in fiscal 2000, cash used for three acquisitions of $573 million,
which was used to partially fund capital offset somewhat by $51 million of proceeds from the
expenditures, dividend payments, merger-related formation of the transmission and clutch joint
expenses and the repurchase of treasury stock. venture with ZF Friedrichshafen AG (ZF). In fiscal
Cash flow from operations was $262 million and 1998, cash used for investing activities and capital
$280 million in fiscal 1999 and 1998, respectively. expenditures was $147 million. These cash outflows
The decline in cash provided by operating activities were partially offset by $17 million of proceeds
in fiscal 2000 from fiscal 1999 is primarily the result received from the sale of assets.
of working capital levels not being reduced
Net cash provided
Financing Cash Flow —
commensurate with the decline in sales during the
by financing activities was $38 million in fiscal 2000.
fourth quarter of fiscal 2000. In addition, increased
During July 2000, the company entered into two
pension funding and retiree medical payments
unsecured credit facilities for a total of $1.5 billion.
contributed to the reduction from 1999 levels.
These new credit facilities became effective on the
I n v e s t i n g C a s h F l o w — Our operating cash date of the merger, replacing existing credit
flow has allowed the company to fund capital agreements of Arvin and Meritor. In addition, during
expenditures of $225 million in fiscal 2000, September 2000, the company instituted a
$170 million in fiscal 1999 and $139 million in fiscal commercial paper program with authorized
1998. The company continues to invest in the borrowings of up to $1 billion. The net increase in
property, plant and equipment needed for future debt in fiscal 2000 was $245 million. The company
business requirements. Capital expenditures in made payments of $172 million for the repurchase
fiscal 2000 included equipment to support new of its stock and $35 million for cash dividends. In
product introductions, capacity expansion and new November 2000, the board of directors declared a
production processes and costs to continue to $0.22 per share quarterly dividend payable in
implement new information systems. The company December 2000.
is currently evaluating additional aggressive cost
Net cash provided by financing activities was
and spending reduction strategies, including
$441 million in fiscal 1999. This amount includes a
reductions in capital spending, and expects capital
$507-million increase in debt, primarily related to the
expenditures in fiscal 2001 to be between
February 1999 public offering of $500 million of debt
$225 million and $300 million. The capital spending
securities. The proceeds were used to repay existing
increase in 2000 and the potential increase for
indebtedness, including short-term credit facilities
2001 are primarily related to the inclusion of Arvin
entered into to facilitate three acquisitions. In addition,
capital expenditures for a quarter in fiscal 2000
the company made payments of $6 million for the
and for a full year in fiscal 2001.
repurchase of its stock, $29 million for cash dividends
In fiscal 2000, cash used for investing activities and $31 million for the settlement of interest rate
included the capital expenditures described above, agreements entered into in 1998 (see Note 14 of
cash payments of $49 million relating to the merger Notes to Consolidated Financial Statements).
between Arvin and Meritor and cash used for
acquisitions of businesses and investments of
$74 million. This cash used was partially offset by
$148 million of proceeds from dispositions of
assets, property and businesses, primarily relating to
the sale of the seat adjusting systems business.
23

Net cash used for financing activities was The company regularly considers various strategic
$216 million in 1998. This amount reflects net and business opportunities, including acquisitions.
payments of $129 million to reduce debt. In addition, Although no assurance can be given as to whether
the company made net payments of $58 million or when any acquisitions will be consummated, if an
relating to certain Canadian tax obligations and agreement were to be reached, the company could
payments of $29 million for cash dividends. finance such acquisitions by issuance of additional
debt or equity securities. The additional debt from
The company’s
Other Information —
any acquisitions, if consummated, could increase
long-term debt to capitalization ratio was 64 percent
the company’s debt to capitalization ratio.
at September 30, 2000, down from 68 percent at
September 30, 1999. Pre-tax interest coverage was Based upon the company’s projected cash flow
5.0x for fiscal 2000, down from 6.3x for fiscal 1999. from operations and existing bank credit facilities,
Excluding special items, pre-tax interest coverage management believes that sufficient liquidity is
was 4.4x for fiscal 2000, down from 6.4x for fiscal available to meet anticipated operating, capital and
1999. On a pro forma basis, excluding special items, dividend requirements over the next 12 months.
pre-tax interest coverage was 3.9x and 4.9x for
fiscal 2000 and 1999, respectively. Standard &
R E S U LT S O F O P E R AT I O N S
Poors and Moody’s have assigned “BBB/Baa2”
The merger of Arvin and Meritor was accounted for
credit ratings, respectively, to the company’s long-
as a purchase with Meritor designated as the
term debt and “A2/P2” credit ratings, respectively,
acquiror. Accordingly, the historic financial
to the company’s commercial paper program.
information for periods prior to July 7, 2000, reflects
The company has retirement medical and defined only the results of Meritor and its consolidated
benefit pension plans that cover most of its U.S. subsidiaries. The information for the period after
and certain non-U.S. employees (see Notes 17 and July 7, 2000, represents the results of ArvinMeritor
18 of Notes to Consolidated Financial Statements). and its consolidated subsidiaries. All prior periods’
Retirement medical plan payments aggregated share and per share data have been restated to
$49 million in fiscal 2000, $41 million in fiscal 1999 conform with the exchange of Meritor shares to
and $36 million in fiscal 1998, and are expected to ArvinMeritor shares on a one Meritor share for
approximate $45 million in fiscal 2001. The company 0.75 ArvinMeritor shares basis, in connection with
made pension plan contributions of $40 million in the merger (see Note 3 of Notes to Consolidated
fiscal 2000, $30 million in fiscal 1999 and $28 million Financial Statements). All earnings per share
in fiscal 1998. Management expects to fund at least amounts are on a diluted basis. All references to
the minimum pension plan contributions required by pro forma amounts assume that the merger
government regulations for the various plans and occurred at the beginning of each period presented,
anticipates that pension plan funding will be and does not give pro forma effect to any
between $20 million and $40 million in fiscal 2001. acquisitions or divestitures made by Arvin or Meritor.
24

CHIEF FINANCIAL OFFICER’S REVIEW
M A N A G E M E N T ’ S D I S C U S S I O N A N D A N A L Y S I S (continued)
The following sets forth the sales, operating income pro forma amounts for each year (dollars in millions,
and net income of the company for the years ended except per share amounts):
September 30, 2000, 1999 and 1998, as well as
Pro Forma(unaudited)(1)
As Reported
Year Ended September 30, 2000 1999 1998 2000 1999 1998
Sales
Light Vehicle Systems $ 2,031 $ 1,575 $ 1,475 $ 3,668 $ 3,474 $ 3,041
Commercial Vehicle Systems 2,872 2,875 2,361 2,926 2,941 2,425
Light Vehicle Aftermarket 209 — — 950 906 686
Other 41 — — 178 170 116
Total Sales $ 5,153 $ 4,450 $ 3,836 $ 7,722 $ 7,491 $ 6,268
Operating income
Light Vehicle Systems $ 149 $ 129 $ 86 $ 232 $ 198 $ 155
Commercial Vehicle Systems 221 232 212 231 244 224
Light Vehicle Aftermarket 6 — — 43 72 62
Other — — — 9 17 3
Segment Operating Income 376 361 298 515 531 444
Gain on sale of business and other 89 24 — 89 31 —
Restructuring costs and other (26) (28) — (30) (35) (7)
Merger costs (10) — — — — —
Total Operating Income 429 357 298 574 527 437
Other income — 2 — — 2 (2)
Equity in earnings of affiliates 29 35 28 40 45 32
Non-operating one-time items — — (31) (3) (1) (25)
Interest expense, net (89) (61) (39) (142) (117) (80)
Provision for income taxes (141) (129) (102) (177) (169) (135)
Minority interest (10) (10) (7) (5) (7) (9)
Net Income $ 218 $ 194 $ 147 $ 287 $ 280 $ 218
Diluted Earnings per Share $ 4.12 $ 3.75 $ 2.84 $ 4.02 $ 3.67 $ 2.87
Diluted Earnings per Share
Before Special Items (2) $ 3.52 $ 3.73 $ 3.20 $ 3.56 $ 3.66 $ 3.11
(1) Pro forma financial information presented as if the merger had occurred at the beginning of each fiscal year and reflects (a) the amortization of goodwill from
merger and the elimination of historical Arvin goodwill amortization expense; (b) the adjustment to interest expense for borrowings to fund the Arvin cash
consideration and other financing costs; (c) the income tax effects of (a) and (b) above; and (d) the adjustment of shares outstanding representing the exchange
of one share of Meritor common stock for 0.75 shares of ArvinMeritor common stock and one share of Arvin common stock for one share of ArvinMeritor
common stock, based on the average shares outstanding for each year.
(2) Special items in fiscal 2000 include gain on the sale of the seat adjusting systems business and other assets of $89 million ($54 million after-tax, or $1.01 per
share), restructuring costs of $26 million ($16 million after-tax, or $0.30 per share), and merger expenses of $10 million ($6 million after-tax, or $0.11 per share).
Special items in fiscal 1999 include gain on formation of the ZF Meritor joint venture of $24 million ($18 million after-tax, or $0.34 per share) and restructuring
costs of $28 million ($17 million after-tax, or $0.33 per share). Special items in fiscal 1998 include interest rate settlement costs of $31 million ($19 million
after-tax, or $0.36 per share). Pro forma amounts in fiscal 2000 exclude merger costs of $70 million ($58 million after-tax, or $0.81 per share). In addition to the
special items discussed above, pro forma special items in fiscal 2000 include restructuring and other charges of $4 million ($3 million after-tax, or $0.04 per
share), and $3 million ($2 million after-tax, or $0.03 per share) non-operating one-time items. Pro forma amounts in fiscal 1999 also include a gain on sale of
affiliate of $7 million ($5 million after-tax, or $0.07 per share), restructuring and other charges of $7 million ($4 million after-tax, or $0.05 per share) and
non-operating one-time items of $1 million ($1 million after-tax, or $0.01 per share). Pro forma amounts in fiscal 1998 also include restructuring and other costs
of $7 million ($5 million after-tax, or $0.07 per share) and a gain in non-operating one-time items of $6 million ($6 million after-tax, or $0.08 per share).
25

The following charts demonstrate
the strength, diversity and balance
of our served markets, product mix and
geographic presence for the fiscal year
ended September 30, 2000, as a
percent of sales on a pro forma basis.
Served Markets Geographic Presence
Product Mix
3% Asia/Pacific and Other
3% South America
12% Other
15% Other
12% Light Vehicle Aftermarket
6% Commercial Vehicle Aftermarket
28% Europe
30%
9% Truck and Trailer Axles
International Commercial
and Brakes
Trucks and Trailers 12% Canada/Mexico
17% North American Commercial
15% Aperture Systems
Trucks and Trailers
16% European Light Vehicles 14% Undercarriage Systems
28% 26% 54%
North American Light Vehicles Exhaust Systems U.S.
2000 Compared to 1999 L i g h t Ve h i c l e S y s t e m s ( LV S ) S a l e s —
Sales for fiscal 2000 were $5.2 billion, LVS sales grew 29 percent, to $2.0 billion, from
Sales —
up $703 million, or 16 percent, over last year’s sales $1.6 billion a year ago. Fiscal 2000 sales include
of $4.5 billion. Included in fiscal 2000 sales are $447 million of sales from Arvin businesses, offset
$714 million of sales attributable to the merger with somewhat by $84 million of negative currency
Arvin and a decrease of about $130 million due to exchange. Adjusting to exclude the sales attributable
currency exchange. Excluding the impact of currency to the merger with Arvin, LVS sales would have been
and the merger with Arvin, fiscal 2000 sales would 1 percent higher than fiscal 1999 sales. Market
have been up 3 percent from fiscal 1999. The sale of penetration gains, principally in the door, suspension,
the company’s seat adjusting systems business in wheel and seat motor lines, combined with strong
November 1999 resulted in a decrease of $98 million industry volumes drove this growth, which was offset
in sales year-over-year. Additionally, the company’s by the sale of the LVS seat adjusting systems
transmission and clutch business contributed sales business in early fiscal 2000 and the negative impact
of $166 million in fiscal 1999. The results of this of currency. On a pro forma basis, LVS sales for fiscal
business are now reported as equity income, due to 2000 were $3.7 billion, up $194 million or 6 percent
the formation of the ZF Meritor joint venture in fiscal from $3.5 billion in 1999. Additional market
1999. Pro forma sales, as if Arvin and Meritor had penetration gains in the exhaust business drove this
operated as a merged company in all periods, were further growth. LVS sales in North America grew
$7.7 billion in fiscal 2000, an increase of 3 percent 48 percent (11 percent on a pro forma basis). Sales in
over pro forma 1999 sales. South America and Asia/Pacific grew 7 percent and
5 percent, respectively (up 4 percent and 6 percent on
a pro forma basis, respectively). Sales in Europe were
up 15 percent (down 2 percent on a pro forma basis).
26

CHIEF FINANCIAL OFFICER’S REVIEW
M A N A G E M E N T ’ S D I S C U S S I O N A N D A N A L Y S I S (continued)
C o m m e r c i a l Ve h i c l e S y s t e m s ( C V S ) expenses of $10 million ($6 million after-tax, or
CVS reported $2.9 billion in sales of
Sales — $0.11 per share). Fiscal 1999 operating income was
components and systems for original equipment $357 million, and includes a restructuring charge of
and the aftermarket in fiscal 2000, including $28 million ($17 million after-tax, or $0.33 per share)
$17 million attributable to the merger with Arvin, and a one-time gain of $24 million ($18 million
which was down slightly from fiscal 1999 sales. after-tax, or $0.34 per share) in connection with the
CVS sales in North America were $2.0 billion, down formation of a transmission and clutch joint venture
$148 million or 7 percent from $2.2 billion in fiscal with ZF Friedrichshafen AG.
1999. The decline in North American heavy truck
Excluding the restructuring charges, merger costs and
markets of approximately 7 percent drove this
one-time gains from sales of businesses and assets,
decline. European sales were up $103 million, or
operating income would have been $376 million in
18 percent, and South American sales were up
fiscal 2000, up $15 million from $361 million in fiscal
$18 million, or 27 percent, while sales in the rest of
1999. This increase is attributable to the results of
the world were up $24 million. On a pro forma
Arvin, included in the company’s results since
basis, CVS sales would have been $2.9 billion in
July 7, 2000. Operating margins were 8.3 percent in
fiscal 2000, down $15 million, or 1 percent, from
fiscal 2000 (7.3 percent, excluding the special items),
pro forma 1999 sales.
versus 8.0 percent in fiscal 1999 (8.1 percent,
L i g h t Ve h i c l e A f t e r m a r k e t ( LVA ) excluding the special items). On a pro forma basis,
LVA sales were $209 million in fiscal
Sales — excluding special items, operating income would
2000 with no sales in fiscal 1999, because this have been $515 million in fiscal 2000, down 3 percent
business is attributable to Arvin and is accordingly from $531 million in fiscal 1999. Pro forma operating
included in the consolidated results only from margins before special items declined from
July 7, 2000, and forward. On a pro forma basis, 7.1 percent in fiscal 1999 to 6.7 percent in fiscal 2000.
LVA sales in fiscal 2000 were $950 million, an
LVS operating
LV S O p e r a t i n g I n c o m e —
increase of 5 percent, or $44 million from pro forma
income was $149 million in fiscal 2000, with
1999 levels. The increase in pro forma sales is
operating margins of 7.3 percent. Operating
attributable primarily to the inclusion of a full year of
income was up $20 million, or 16 percent, from
results of the Purolator business, which was
1999, although operating margins decreased
acquired by Arvin in March 1999. Purolator
90 basis points. Results from the merger with Arvin
generated $318 million of pro forma sales in fiscal
contributed $7 million of operating income in fiscal
2000, as compared to $203 million in pro forma
2000. Operating income increased due to the
sales in fiscal 1999. These increases were partially
volume contribution from higher sales and favorable
offset by price reductions and product mix issues,
product mix. On a pro forma basis, operating
the negative impact of currency translation and a
income for fiscal 2000 increased $34 million, or
softening of markets in both North America and
17 percent, to $232 million. Pro forma operating
Europe in the latter part of the fiscal year.
margins increased from 5.7 percent in fiscal 1999
O p e r a t i n g I n c o m e — Fiscal 2000 operating to 6.3 percent in fiscal 2000.
income was $429 million, up $72 million from fiscal
CVS operating
CVS Operating Income —
1999. In fiscal 2000, the company completed the sale
income was $221 million in fiscal 2000, a decrease
of its LVS seat adjusting systems business for
of 5 percent from 1999. Operating margins declined
approximately $135 million in cash, resulting in a
by 40 basis points to 7.7 percent in fiscal 2000.
one-time gain of $83 million ($51 million after-tax, or
The decline in margins was driven by higher costs
$0.96 per share). The seat adjusting systems
due to unfavorable economics, the negative impact
business had fiscal 1999 sales of approximately
of currency exchange and higher warranty expenses.
$130 million. Also during fiscal 2000, the company
On a pro forma basis, operating income for fiscal
recorded a restructuring charge of $26 million
2000 was $231 million, also down 5 percent from
($16 million after-tax, or $0.30 per share) relating to
pro forma fiscal 1999. Pro forma operating margins
workforce reductions and other facility-related costs
of 7.9 percent also declined by 40 basis points.
for the rationalization of operations and merger
27

LVA O p e r a t i n g I n c o m e — LVA operating 1999 Compared to 1998
Sales for fiscal 1999 were $4.5 billion,
income was $6 million in fiscal 2000, with operating Sales —
up $614 million, or 16 percent, over fiscal 1998
margins of 2.9 percent. This business was acquired
sales of $3.8 billion.
as part of the merger with Arvin and is, accordingly,
included in the consolidated results from
LV S S a l e s — LVS sales grew $100 million, or
July 7, 2000, and forward. On a pro forma basis,
7 percent, to $1.6 billion for fiscal year 1999.
operating income and margins for fiscal 2000 were
Market penetration gains, principally in the door,
$43 million and 4.5 percent, respectively, down from
suspension and seat adjusting systems product
fiscal 1999 pro forma operating income of
lines, combined with strong North American vehicle
$72 million and related margins of 7.9 percent. The
volumes drove the higher sales. This growth was
decline in LVA pro forma operating income relates
partially offset by weakness in European roof
primarily to reduced pricing and product mix issues,
systems sales and the negative impact of currency
and was partially offset by increased volume. The
exchange and lower vehicle volumes in South
decline in operating income also reflects the soft
America. LVS fiscal 1999 sales in North America
market conditions experienced in late fiscal 2000
increased $127 million, or 22 percent, and sales in
and consolidation of the distribution channel base.
Asia/Pacific were up $21 million, or 38 percent.
Sales in Europe and South America were down
Equity in Earnings of Affiliates —
$37 million and $11 million, respectively.
Equity in earnings of affiliates was down $6 million
in fiscal 2000, to $29 million, primarily as a result of
C V S S a l e s — CVS reported $2.9 billion in
the lower North American truck volumes.
fiscal 1999 sales, an increase of $514 million, or
22 percent, over 1998. Excluding acquisitions, CVS
Interest
Interest Expense, Net —
sales increased $119 million, or 5 percent. Record
expense, net for fiscal 2000 was $89 million, up
production volumes in the North American heavy
$28 million from fiscal 1999 interest expense, net of
truck market drove North American sales of truck
$61 million. The increase is primarily attributable to
axles, brakes and transmissions to $1.3 billion, an
higher debt levels associated with acquisitions and
increase of $245 million, or 22 percent. North
the share repurchase programs. On a pro forma
American sales of other CVS products were
basis, fiscal 2000 interest expense, net increased
$657 million, down $65 million from 1998, primarily
$25 million, to $142 million, primarily as a result of
as a result of lower government program sales.
the share repurchase programs and acquisitions
European sales, excluding acquisitions, were down
made during fiscal 1999.
$21 million, or 6 percent, and South American sales
N e t I n c o m e — Net income for fiscal 2000 was
fell $47 million, or 41 percent, while CVS sales in the
$218 million, or $4.12 per share, an increase of
rest of the world were up $7 million.
12 percent and 10 percent, respectively, as
O p e r a t i n g I n c o m e — Fiscal 1999 operating
compared with fiscal 1999 net income of
income was up $59 million over fiscal 1998.
$194 million, or $3.75 per share. Net income before
Excluding the restructuring charge and gain on sale
special items was $186 million, or $3.52 in fiscal
discussed earlier, fiscal 1999 operating income of
2000, compared with 1999 net income before
$361 million was up 21 percent over the prior year’s
special items of $193 million, or $3.73 per share.
operating income of $298 million. Operating
Special items include the restructuring charges,
margins, before the special items, improved to
gains and merger expenses discussed earlier. On a
8.1 percent in fiscal 1999, from 7.8 percent in fiscal
pro forma basis, excluding special items, fiscal 2000
1998. This improvement reflects the company’s
net income was down $25 million, or 9 percent, to
continued focus on process improvement and cost
$254 million, with earnings per share of $3.56,
reductions, offset somewhat by premium costs
compared to 1999 earnings per share of $3.66.
associated with meeting the record levels of
demand in the North American truck markets.
28

CHIEF FINANCIAL OFFICER’S REVIEW
M A N A G E M E N T ’ S D I S C U S S I O N A N D A N A L Y S I S (continued)
The company’s process improvement and cost- ENVIRONMENTAL MATTERS
Federal, state and local requirements relating to the
reduction programs relate to (1) purchasing, which
discharge of substances into the environment, the
includes outsourcing non-core manufacturing and
disposal of hazardous wastes and other activities
using lower cost global sourcing of materials and
affecting the environment have, and will continue to
supply base management; and (2) manufacturing,
have, an impact on the manufacturing operations of
which includes shifting production to lower cost
the company. To date, compliance with environmental
facilities, consolidating common processes, improving
requirements and resolution of environmental claims
material flow and investing in capital and systems.
has been accomplished without material effect on the
LVS operating
LV S O p e r a t i n g I n c o m e —
company’s liquidity and capital resources, competitive
margins improved dramatically in fiscal 1999 to
position, or financial statements.
8.2 percent, from 5.8 percent in 1998. Substantial
The company has been designated as a potentially
savings were realized in fiscal 1999 from material
responsible party at 10 Superfund sites, excluding
and other cost-reduction programs. The operating
sites as to which the company’s records disclose
margin improvement also reflects the volume
no involvement or as to which the company’s
contribution from the higher sales.
potential liability has been finally determined.
CVS operating
CVS Operating Income —
Management estimates the total, reasonably
income for fiscal 1999 was $232 million, an increase
possible costs the company could incur for the
of 9 percent over fiscal 1998. Operating margins
remediation of Superfund sites at September 30,
declined to 8.1 percent in fiscal 1999 from 9.0 percent
2000, to be approximately $20 million, of which
in 1998. This margin decline was driven primarily
probable costs of $13 million have been accrued.
by an increase in premium freight costs and the use
Various other lawsuits, claims and proceedings have
of higher-cost alternate component suppliers to
been asserted against the company, alleging
meet the record demand in the North American
violations of federal, state and local environmental
heavy truck market. Fiscal 1999 operating margins
protection requirements, or seeking remediation of
were also adversely impacted by the decline of
alleged environmental impairments, principally at
higher-margin government program sales.
previously disposed-of properties. For these
Equity in Earnings of Affiliates —
matters, ArvinMeritor expects that any amounts that
Equity in earnings of affiliates increased $7 million
may be required to be paid in excess of recorded
in fiscal 1999, to $35 million, primarily as a result of
reserves of $25 million will not have a material
higher sales of anti-lock brakes and related systems
adverse effect on the company’s financial condition.
by the company’s WABCO affiliate.
Based on its assessment, management believes
Net income for the year was
Net Income —
that the company’s expenditures for environmental
$194 million, or $3.75 per share, an increase of
capital investment and remediation necessary to
32 percent as compared with 1998 net income of
comply with present regulations governing environ-
$147 million, or $2.84 per share. Net income before
mental protection and other expenditures for the
special items was $193 million in fiscal 1999, or
resolution of environmental claims will not have a
$3.73 per share, compared with 1998 net income
material adverse effect on the company’s liquidity and
before special items of $166 million, or $3.20 per
capital resources, competitive position or financial
share, an improvement of 17 percent in earnings per
statements. Management cannot assess the possible
share. Special items include the one-time gain
effect of compliance with future requirements.
related to the formation of the ZF Meritor joint
venture and a restructuring charge recorded in fiscal
1999 and the one-time charge in fiscal 1998 for the
settlement of interest rate agreements.
29

AFFILIATES INTERNATIONAL OPERATIONS
The company has 16 joint ventures, which are Approximately 44 percent of the company’s total
accounted for under the equity method of assets as of September 30, 2000, and 37 percent of
accounting. These strategic alliances provide fiscal 2000 sales were outside North America.
for sales, product design, development and Management believes that international operations
manufacturing in certain product and geographic have significantly benefited the financial
areas. Aggregate sales of these affiliates were performance of the company. However, the
$924 million, $488 million and $443 million in fiscal company’s international operations are subject to a
2000, 1999 and 1998, respectively. The increase in number of risks inherent in operating abroad. There
fiscal 2000 is due to the inclusion of approximately can be no assurance that these risks will not have a
$290 million in sales from Arvin’s affiliates and material adverse impact on the company’s ability to
$146 million attributable to sales of the ZF Meritor increase or maintain its foreign sales or on its
joint venture created in late fiscal 1999. financial condition or results of operations. During
fiscal 2000, the company’s sales and operating
The company’s equity in earnings of affiliates was
income were both negatively impacted by
$29 million in fiscal 2000, compared to $35 million in
approximately $130 million and $20 million,
fiscal 1999 and $28 million in fiscal 1998. Cash
respectively, due to exchange rate changes. The
dividends to ArvinMeritor from these joint ventures
impact the euro and other currencies will have on
were $32 million, $28 million and $27 million in fiscal
the company’s sales and operating income is
2000, 1999 and 1998, respectively. The decrease in
difficult to predict in the upcoming year.
fiscal 2000 earnings of affiliates from fiscal 1999 is
primarily a result of the lower North American truck On January 1, 1999, the euro became the common
volumes, which resulted in lower sales and lower currency of eleven countries of the European Union.
earnings of certain affiliates. The increase in equity During a three-year transition period, the present
income in fiscal 1999 from fiscal 1998 relates national currencies of these eleven countries will
primarily to the company’s 50 percent-owned joint become sub-units of the euro at fixed exchange
venture with WABCO, a leading supplier of anti-lock rates. The European Union’s current plans call for the
braking systems for North American heavy-duty transition period to be completed by July 1, 2002,
commercial vehicles. This growth was attributed to at which time the euro will become the sole legal
the growing use of anti-lock braking systems across tender in those participating countries.
North America.
The company is engaged in business in some of the
countries that participate in the European Monetary
Union, and sales for fiscal 2000 in these countries
INCOME TAXES
The company’s effective income tax rate in fiscal were approximately 17 percent of the company’s
2000 was 38.2 percent, compared to 38.8 percent in total sales. In addition, the company enters into
fiscal 1999 and 40.0 percent in fiscal 1998. The tax foreign currency forward exchange contracts with
rate decline in fiscal 2000 from the 1999 level was respect to several of the existing currencies that
primarily due to the company’s legal entity have been subsumed into the euro and has
realignment, which resulted in lower state income borrowings in participating currencies primarily
taxes. Income taxes on the one-time gain related to under its revolving Credit Facility. The company has
the formation of the ZF Meritor joint venture in fiscal analyzed the potential effects of the euro conversion
1999 were recorded at an effective tax rate of on competitive conditions, information technology
25 percent, due to a book-tax basis difference on and other systems, currency risks, financial
assets transferred into the joint venture, which instruments and contracts, and has examined the
reduced the company’s overall effective tax rate for tax and accounting consequences of euro
fiscal 1999 by 1.2 percentage points, as compared conversion, and believes that the conversion will not
to 1998’s effective tax rate. have a material adverse effect on its business,
operations and financial condition.
30

CHIEF FINANCIAL OFFICER’S REVIEW
M A N A G E M E N T ’ S D I S C U S S I O N A N D A N A L Y S I S (continued)
The company is making the necessary adjustments NEW ACCOUNTING
to accommodate the conversion, including PRONOUNCEMENTS
There were no new accounting pronouncements
modifications to its information technology systems
adopted by the company in fiscal 2000 that had a
and programs, pricing schedules and financial
material impact on the company’s financial condition
instruments. The company expects that all
or results of operations. On October 1, 2000, the
necessary actions will be completed in a timely
company adopted Statement of Financial
manner, and that the costs associated with the
Accounting Standards No. 133, “Accounting for
conversion to the euro will not be material.
Derivative Instruments and Hedging Activities.” The
adoption of this standard did not have a material
QUANTITATIVE AND
impact on the company (see Note 2 of Notes to
QUALITATIVE DISCLOSURES
Consolidated Financial Statements).
ABOUT MARKET RISK
The company is exposed to foreign currency
exchange rate risk inherent in its purchases, sales, CAUTIONARY STATEMENT
This Management’s Discussion and Analysis, as well
assets and liabilities denominated in currencies
as other sections of this annual report, contains
other than the U.S. dollar and interest rate risk
statements relating to future results of the company
associated with the company’s debt.
(including certain projections and business trends)
The company enters into foreign currency forward
that are “forward-looking statements” as defined in
exchange contracts to minimize the risk of
the Private Securities Litigation Reform Act of 1995.
unanticipated gains and losses from currency rate
Forward-looking statements are typically identified
fluctuations on foreign currency commitments
by words or phrases such as “believe,” “expect,”
entered into in the ordinary course of business
“anticipate,” “estimate,” “should,” “are likely to be”
(see Note 14 of Notes to Consolidated Financial
and similar expressions. Actual results may differ
Statements). It is the policy of the company not to
materially from those projected as a result of certain
enter into derivative financial instruments for
risks and uncertainties, including, but not limited to,
speculative purposes, and therefore the company
global economic and market conditions; the
holds no derivative instruments for trading purposes.
demand for commercial, specialty and light vehicles
for which the company supplies products; risks
The company has performed a sensitivity analysis
inherent in operating abroad; OEM program delays;
assuming a hypothetical 10-percent adverse
demand for and market acceptance of new and
movement in foreign currency exchange rates and
existing products; successful development of new
interest rates applied to the underlying exposures
products; reliance on major OEM customers; labor
described above. As of September 30, 2000, the
relations of the company, its customers and
analysis indicated that such market movements
suppliers; successful integration of acquired or
would not have a material effect on the company’s
merged businesses; the failure to achieve the
consolidated financial position, results of operations
expected annual savings and synergies from past
or cash flows. Actual gains or losses in the future
and future business combinations; competitive
may differ significantly from that analysis, however,
product and pricing pressures; the amount of the
based on changes in the timing and amount of
company’s debt, as well as other risks and
interest rate and foreign currency exchange rate
uncertainties, such as those described under
movements and the company’s actual exposures.
Overview and Outlook, Environmental Matters,
International Operations, and Quantitative and
Qualitative Disclosures About Market Risk and those
detailed herein and from time to time in the filings of
the company with the Securities and Exchange
Commission. These forward-looking statements are
made only as of the date hereof, and the company
undertakes no obligation to update or revise the
forward-looking statements, whether as a result of
new information, future events or otherwise.
31

MANAGEMENT’S RESPONSIBILITY
FOR FINANCIAL REPORTING
The consolidated financial statements of ArvinMeritor, Inc. have been prepared by management, which is
responsible for their integrity and objectivity. These statements have been prepared in conformity with generally
accepted accounting principles of the U.S. and, where appropriate, reflect estimates based on judgements of
management.
The company’s system of internal controls is designed to provide reasonable assurance that company assets are
safeguarded from loss or unauthorized use or disposition, and that transactions are executed in accordance with
management’s authorization and properly recorded to permit the preparation of financial statements in
accordance with generally accepted accounting principles of the U.S. This system is augmented by careful
selection and training of qualified personnel, proper division of responsibilities, the dissemination of written
policies and procedures, and an internal audit program to monitor its effectiveness.
The financial statements have been audited by Deloitte & Touche LLP, independent certified public accountants,
whose report appears on page 33.
The board of directors, through its audit committee consisting of six outside directors, oversees management’s
financial reporting responsibilities and programs for ethical business conduct. As part of these responsibilities,
the audit committee meets regularly with representatives of management, the independent accountants and the
company’s general auditor. The independent accountants and the company’s general auditor have full and free
access to the audit committee and meet with the committee both with and without the presence of management.
Larry Yost Bill Hunt Tom Madden
Chairman of the Board Vice Chairman Senior Vice President
Chief Executive Officer President Chief Financial Officer
32

INDEPENDENT AUDITORS’ REPORT
TO THE BOARD OF DIRECTORS AND SHAREOWNERS
OF ARVINMERITOR, INC.:
We have audited the accompanying consolidated balance sheets of ArvinMeritor, Inc. and subsidiaries
(formerly Meritor Automotive, Inc. and subsidiaries – see Note 1) as of September 30, 2000 and 1999, and the
related consolidated statements of income, shareowners’ equity and cash flows for each of the three years in
the period ended September 30, 2000. These financial statements are the responsibility of the company’s
management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such consolidated financial statements present fairly, in all material respects, the financial
position of ArvinMeritor, Inc. and subsidiaries at September 30, 2000 and 1999, and the results of their
operations and their cash flows for each of the three years in the period ended September 30, 2000 in
conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Detroit, Michigan
November 7, 2000
33

STATEMENT OF CONSOLIDATED INCOME
In millions, except per share amounts
Year Ended September 30, 2000 1999 1998
Sales $ 5,153 $ 4,450 $ 3,836
Cost of sales 4,410 3,798 3,287
Gross Margin 743 652 549
Selling, general and administrative (348) (280) (248)
Amortization expense (19) (11) (3)
Restructuring costs (26) (28) —
Merger expenses (10) — —
Gain on sale of business and other 89 24 —
Operating Income 429 357 298
Other income — 2 —
Equity in earnings of affiliates 29 35 28
Interest rate settlement cost — — (31)
Interest expense, net (89) (61) (39)
Income Before Income Taxes 369 333 256
Provision for income taxes (141) (129) (102)
Minority interests (10) (10) (7)
Net Income $ 218 $ 194 $ 147
Basic and Diluted Earnings per Share $ 4.12 $ 3.75 $ 2.84
Average Common Shares Outstanding - Basic and Diluted 52.9 51.8 51.8
See Notes to Consolidated Financial Statements.
34

CONSOLIDATED BALANCE SHEET
In millions
September 30, 2000 1999
Assets
Current Assets
Cash and cash equivalents $ 116 $ 68
Receivables (less allowance for doubtful accounts: 2000, $22; 1999, $10) 1,278 742
Inventories 583 392
Other current assets 212 130
Total current assets 2,189 1,332
Net Property 1,348 766
Net Goodwill (less accumulated amortization: 2000, $48; 1999, $35) 756 454
Other Assets 427 244
Total Assets $ 4,720 $ 2,796
Liabilities and Shareowners’ Equity
Current Liabilities
Short-term debt $ 183 $ 44
Accounts payable 1,058 712
Accrued compensation and benefits 203 144
Accrued income taxes 27 28
Other current liabilities 254 196
Total current liabilities 1,725 1,124
Long-Term Debt 1,537 802
Accrued Retirement Benefits 382 371
Other Liabilities 113 116
Minority Interests 96 35
Company-Obligated Mandatorily Redeemable Preferred Capital Securities 74 —
Shareowners’ Equity
Common stock (2000, 71.0 shares issued and 67.9 outstanding;
1999, 69.1 shares issued and 68.8 outstanding) 71 69
Additional paid-in capital 546 158
Retained earnings 466 283
Treasury stock (2000, 3.1 shares; 1999, 0.3 shares) (53) (6)
Accumulated other comprehensive loss (237) (156)
Total shareowners’ equity 793 348
Total Liabilities and Shareowners’ Equity $ 4,720 $ 2,796
See Notes to Consolidated Financial Statements.
35

STATEMENT OF CONSOLIDATED CASH FLOWS
In millions
Year Ended September 30, 2000 1999 1998
Operating Activities
Net income $ 218 $ 194 $ 147
Adjustments to net income to arrive at cash
provided by operating activities:
Depreciation 143 120 99
Amortization 19 11 3
Gain on sale of business and other (89) (24) —
Restructuring, net of expenditures 19 23 —
Deferred income taxes 32 17 (10)
Pension and retiree medical expense 58 52 50
Pension and retiree medical contributions (89) (71) (64)
Changes in assets and liabilities, excluding effects of
acquisitions, divestitures and foreign currency adjustments:
Receivables 15 (95) (88)
Inventories (10) — (34)
Accounts payable (28) 45 129
Change in other working capital (66) (18) 64
Other assets and liabilities 6 8 (16)
Cash Provided by Operating Activities 228 262 280
Investing Activities
Capital expenditures (225) (170) (139)
Acquisitions of businesses and investments, net of cash acquired (74) (573) (8)
Payment of certain merger-related assumed liabilities (49) — —
Proceeds from disposition of assets, property and businesses 148 51 17
Cash Used for Investing Activities (200) (692) (130)
Financing Activities
Net increase (decrease) in revolving and other debt 245 9 (129)
Proceeds from issuance of notes — 498 —
Net increase (decrease) in debt 245 507 (129)
Cash dividends (35) (29) (29)
Purchases of treasury stock (172) (6) —
Payment of interest rate settlement cost — (31) —
Distribution tax obligation, net — — (58)
Cash Provided by (Used for) Financing Activities 38 441 (216)
Effect of Exchange Rate Changes on Cash (18) (8) (2)
Increase (Decrease) in Cash 48 3 (68)
Cash at Beginning of Year 68 65 133
Cash at End of Year $ 116 $ 68 $ 65
See Notes to Consolidated Financial Statements.
36

STATEMENT OF CONSOLIDATED SHAREOWNERS’ EQUITY
In millions, except per share amounts
Year Ended September 30, 2000 1999 1998
Common Stock
Beginning balance $ 69 $ 69 $ 69
ArvinMeritor merger: — —
Shares issued to Arvin shareowners 24 — —
Conversion of outstanding Meritor shares (15) — —
Cancellation of Meritor treasury stock (7) — —
Ending balance 71 69 69
Additional Paid-In Capital
Beginning balance 158 156 154
ArvinMeritor merger:
Shares issued to Arvin shareowners and
Arvin stock options converted 492 — —
Conversion of outstanding Meritor shares 15 — —
Cancellation of Meritor treasury stock (119) — —
Other — 2 2
Ending balance 546 158 156
Retained Earnings
Beginning balance 283 118 —
Net income 218 194 147
Cash dividends (per share: 2000, $0.64; 1999 and 1998, $0.56) (35) (29) (29)
Ending balance 466 283 118
Treasury Stock
Beginning balance (6) — —
Cancellation of treasury stock in connection with merger 125 — —
Purchase of treasury stock (172) (6) —
Ending balance (53) (6) —
Accumulated Other Comprehensive Loss
Beginning balance (156) (77) (72)
Foreign currency translation adjustments (81) (79) (5)
Ending balance (237) (156) (77)
Total Shareowners’ Equity $ 793 $ 348 $ 266
Comprehensive Income
Net income $ 218 $ 194 $ 147
Foreign currency translation adjustments (81) (79) (5)
Total Comprehensive Income $ 137 $ 115 $ 142
See Notes to Consolidated Financial Statements.
37

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION Foreign Currency
ArvinMeritor, Inc. (the company or ArvinMeritor) is a Local currencies are considered the functional
leading global supplier of a broad range of currencies outside the U.S., except for subsidiaries
integrated systems, modules and components located in countries with highly inflationary
serving light vehicle, commercial truck, trailer and economies. For operations reporting in local
specialty original equipment manufacturers and currencies, assets and liabilities are translated at
certain aftermarkets. The company also provides year-end exchange rates with cumulative currency
coil coating applications to the transportation, translation adjustments included as a component of
appliance, construction and furniture industries. Accumulated Other Comprehensive Loss. Income
and expense items are translated at average rates of
On July 7, 2000, Meritor Automotive, Inc. (Meritor)
exchange during the year.
and Arvin Industries, Inc. (Arvin) merged into
ArvinMeritor. The merger was accounted for utilizing Cash Equivalents
the purchase method of accounting. The financial The company considers all highly liquid investments
information for the periods prior to July 7, 2000, purchased with a maturity of three months or less to
reflect the results of Meritor and its consolidated be cash equivalents.
subsidiaries prior to the merger. The information for
Inventories
the period after July 7, 2000, represents the results
Inventories are stated at the lower of cost (using LIFO,
of ArvinMeritor and its consolidated subsidiaries.
FIFO or average methods) or market (determined on
All prior periods’ share and per share data have the basis of estimated realizable values).
been restated to conform with the exchange of
To o l i n g
Meritor shares to ArvinMeritor shares on a one to
Costs incurred by the company for certain
0.75 basis in connection with the merger with Arvin
engineering and tooling projects, principally for light
(see Note 3).
vehicle products, for which customer reimbursement
Certain prior year amounts have been reclassified to is contractually guaranteed are classified as Other
conform with current year presentation. Current Assets in the accompanying Consolidated
Balance Sheet. Provisions for losses are provided
at the time management anticipates costs to
2. ACCOUNTING POLICIES
exceed anticipated customer reimbursement.
Use of Estimates
Company-owned tooling is classified as property
The financial statements of ArvinMeritor have
and depreciated over its expected life or the life of
been prepared in accordance with accounting
the related vehicle platform, whichever is shorter.
principles generally accepted in the U.S. that require
management to make estimates and assumptions Property and Depreciation
that affect the amounts reported in the financial Property is stated at cost. Depreciation of property
statements. Actual results could differ from is based on estimated useful lives, generally using
those estimates. the straight-line method. Significant renewals and
betterments are capitalized, and replaced units are
C o n s o l i d a t i o n s a n d J o i n t Ve n t u r e s
written off. Maintenance and repairs, as well as
The consolidated financial statements include the
renewals of minor amounts, are charged to expense.
accounts of the company and those majority-owned
subsidiaries in which the company has control. All Intangible Assets
significant intercompany accounts and transactions Goodwill represents the excess of the cost of
are eliminated in consolidation. The accounts and purchased businesses over the fair value of their net
results of operations of controlled subsidiaries where assets at the date of acquisition and is amortized
ownership is greater than 50 percent, but less than using the straight-line method for periods not to
100 percent, are included in the consolidated results exceed 40 years. All intangibles, including patents,
and are offset by a related minority interest expense trademarks and licenses, are reviewed periodically
and liability recorded for the minority interest to determine whether the carrying amount of the
ownership. Investments in affiliates that are not asset is impaired. Adjustments to the carrying value
majority-owned and controlled are reported using the are made if the review indicates this amount will not
equity method of accounting for investments. be recoverable.
38

N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S (continued)
Capitalized Software New Accounting Standards
Costs relating to internally developed or purchased In June 1998, the Financial Accounting Standards
software are capitalized and amortized utilizing the Board (FASB) issued Statement of Financial
straight-line basis over periods not to exceed seven Accounting Standards No. 133 (SFAS 133),
years. These amounts are included in Other Assets “Accounting for Derivative Instruments and Hedging
in the accompanying Consolidated Balance Sheet. Activities,” as amended, effective for all fiscal quarters
of fiscal years beginning after June 15, 2000.
Impairment of Long-Lived Assets
SFAS 133 requires that all derivatives be recognized
Management periodically reviews the realizability of
as either assets or liabilities in the statement of
long-lived assets, based on an evaluation of
financial position and be measured at fair value. The
remaining useful lives, cash flows and profitability
primary type of derivative financial instruments the
projections.
company uses is forward foreign exchange contracts
Revenue Recognition to minimize the foreign currency exposure of various
Revenues are recognized upon shipment of reporting locations related to certain commitments
products to customers. denominated in currencies other than the location’s
functional currency. The company adopted this
Earnings per Share
standard, as amended, effective October 1, 2000.
Basic earnings per share are based upon the
The adoption of this standard did not have a material
weighted average number of shares outstanding
impact on the financial position or results of
during each year. Diluted earnings per share
operations of the company.
assumes the exercise of common stock options
when dilutive.
3. ARVINMERITOR MERGER
Environmental Matters
On July 7, 2000, Meritor and Arvin merged to form
The company records accruals for environmental
ArvinMeritor. Under the terms of the merger
issues in the accounting period in which its
agreement, each share of Meritor common stock was
responsibility is established and the cost can be
converted into the right to receive 0.75 shares of
reasonably estimated. At environmental sites in
common stock of ArvinMeritor, and each share of
which more than one potentially responsible party
Arvin common stock was converted into the right to
has been identified, the company records a liability
receive one share of common stock of ArvinMeritor
for its allocable share of costs related to its
plus $2.00 in cash. In total, approximately 62.3 million
involvement with the site, as well as an allocable
shares of Meritor, 24.3 million shares of Arvin and
share of costs related to insolvent parties or
$48.5 million in cash were exchanged for
unidentified shares. At environmental sites in which
approximately 70.1 million shares of ArvinMeritor.
ArvinMeritor is the only responsible party, the
company records a liability for the total estimated The merger was accounted for by the purchase
costs of remediation before consideration of method of accounting. Accordingly, the results of
recovery from insurers or other third parties. operations of Arvin are included for the period
If recovery from a third party is determined to be subsequent to the date of the merger. The total
probable, the company records a receivable for the estimated merger consideration of $576 million was
estimated recovery. allocated first to assets and liabilities based on their
fair values as of the merger date, with the residual
Stock-Based Compensation
allocated to goodwill, which is being amortized on
The company accounts for its stock-based
a straight-line basis over 40 years. Since the
compensation using the intrinsic value approach
company assumed the stock options outstanding
under Accounting Principles Board Opinion (APB)
of Arvin, the fair value of these options was included
No. 25, “Accounting for Stock Issued to
in determining the fair value. The purchase price
Employees,” and has adopted the disclosure-only
allocation is preliminary and may be revised up to
provisions of Statement of Financial Accounting
one year from the date of acquisition due to
Standards No. 123 (SFAS 123), “Accounting for
appraisals of fixed assets, other fair value
Stock-Based Compensation” (see Note 16).
adjustments and the finalization of any potential
plans of restructuring.
39

A summary of the estimated fair market value of 4. ACQUISITION OF BUSINESSES
During fiscal 1999, the company completed three
assets and liabilities acquired is as follows:
acquisitions. On December 28, 1998, the company
Current assets $ 946 acquired the assets of Euclid Industries and
Property, plant and equipment 610 assumed substantially all of Euclid’s liabilities. The
Goodwill 329 company completed its acquisition of the heavy
Other assets 246 truck axle manufacturing operations of Volvo Truck
Total assets 2,131 Corporation on December 31, 1998. The purchase
price for the Volvo heavy truck axle business was
Current liabilities (988)
approximately $135 million in cash, of which
Long-term liabilities (169)
$34 million is deferred at September 30, 2000. On
Long-term debt and capital securities (398)
January 29, 1999, the company acquired the
Fair market value $ 576
Heavy Vehicle Braking Systems (HVBS) business of
LucasVarity plc for approximately $400 million in
The following unaudited pro forma consolidated cash. These acquisitions were accounted for by the
results of operations assume that the ArvinMeritor purchase method of accounting, and accordingly,
merger occurred as of the beginning of each period the results of operations of the acquired businesses
and excludes merger expenses (in millions, except are included with those of the company for the
per share amounts): periods subsequent to the dates of acquisition.
The assets and liabilities have been recorded at fair
2000 1999
value as of the acquisition dates. The excess of the
Net sales $ 7,722 $ 7,491
purchase price of these acquisitions over the fair
Net income 287 280
market value of assets acquired of $424 million is
Basic earnings per share 4.02 3.68 included in Net Goodwill in the accompanying
Diluted earnings per share 4.02 3.67 Consolidated Balance Sheet and is being amortized
on a straight-line basis over 40 years. These
acquisitions would have added pro forma sales of
Pro forma net income and basic and diluted earnings
$173 million with no impact on net income on a
per share amounts for the fiscal year ended
pro forma basis in 1999, assuming the acquisitions
September 30, 2000, exclude a non-recurring charge
occurred at the beginning of 1999.
of $70 million ($58 million after-tax, or $0.81 per
share) for merger-related expenses. The pro forma
adjustments are based upon available information 5. SALE OF BUSINESSES
and certain assumptions that management believes In the first quarter of 2000, the company completed
are reasonable. The pro forma data is not necessarily the sale of its LVS seat adjusting systems business
indicative of the results of operations of ArvinMeritor for approximately $135 million cash, resulting in a
that would have been achieved if the merger had in one-time gain of $83 million ($51 million after-tax,
fact occurred on such dates, or the results of or $0.96 per basic and diluted share). The seat
operations of ArvinMeritor for any future period. The adjusting systems business had fiscal 1999 sales of
pro forma data does not give effect to any potential approximately $130 million.
restructuring costs or to any potential cost savings or
In the fourth quarter of 1999, a one-time gain of
other synergies that could result from the merger.
$24 million ($18 million after-tax, or $0.34 per share)
was recorded to reflect the formation of a transmission
and clutch joint venture with ZF Friedrichshafen AG
(ZF). Under the terms of the joint venture agreement,
the company transferred the assets of its transmission
and clutch businesses into the joint venture, while
ZF contributed technology and made a $51-million
cash payment to the company. ArvinMeritor and
ZF each own 50 percent of the joint venture.
40

N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S (continued)
6. RESTRUCTURING COSTS 7. INVENTORIES
The company recorded a restructuring charge of Inventories are summarized as follows (in millions):
$26 million ($16 million after-tax, or $0.30 per basic
September 30, 2000 1999
and diluted share) in the third quarter of fiscal 2000.
Finished goods $ 298 $ 181
The charge included severance and other employee
Work in process 142 117
costs of approximately $19 million, related to a net
Raw materials, parts and supplies 195 145
reduction of approximately 500 employees, with the
Total 635 443
balance primarily associated with facility-related
Less allowance to adjust the carrying
costs from the rationalization of operations. As of
September 30, 2000, approximately $6 million had value of certain inventories
been paid in termination benefits, with a net (2000, $125; 1999, $135)
reduction of approximately 160 employees. As of to a LIFO basis 52 51
September 30, 2000, approximately $14 million of Inventories $ 583 $ 392
the reserve remains in Other Current Liabilities in the
accompanying Consolidated Balance Sheet. The
8. OTHER CURRENT ASSETS
company expects the remaining restructuring
Other Current Assets are summarized as follows
actions will be substantially completed by the end of
(in millions):
the third quarter of fiscal 2001.
September 30, 2000 1999
The company recorded a restructuring charge of
Current deferred income taxes
$28 million ($17 million after-tax, or $0.33 per basic
and diluted share) in fiscal 1999. The original charge (see Note 19) $ 122 $ 83
included severance and other employee costs of Customer tooling 37 30
approximately $16 million, related to a net reduction Prepaid and other 53 17
of approximately 350 employees, with the balance Other Current Assets $ 212 $ 130
primarily associated with facility-related costs from
the rationalization of operations. All restructuring
9. NET PROPERTY
actions had been completed as of June 30, 2000,
Net Property is summarized as follows (in millions):
and have resulted in lower-than-expected severance
and other employee costs of approximately
September 30, 2000 1999
$2 million and higher facility-related costs of
Property at cost:
approximately $2 million. As of September 30, 2000,
Land and land improvements $ 66 $ 33
approximately $12 million has been paid in
Buildings 400 308
termination benefits for a net reduction of
Machinery and equipment 1,572 1,217
approximately 500 employees, with approximately
Company-owned tooling 190 194
$2 million remaining in Other Current Liabilities for
Construction in progress 221 113
final termination benefits. The net reduction of
Total 2,449 1,865
employees primarily related to LVS businesses.
Less accumulated depreciation 1,101 1,099
These charges are included in the caption
Net Property $ 1,348 $ 766
Restructuring Costs in the accompanying Statement
of Consolidated Income.
41

During July 2000, the company entered into two
10. OTHER ASSETS
Other Assets are summarized as follows (in millions): unsecured credit facilities: a 364-day, $750-million
credit facility which matures on June 27, 2001, with
September 30, 2000 1999
the option to convert borrowings thereunder to a
Long-term deferred income taxes two-year term loan, and a five-year, $750-million
(see Note 19) $ 9 $ 71 revolving credit facility, which matures on
Investments in affiliates 200 50 June 27, 2005. The new credit facilities became
Prepaid pension costs (see Note 18) 78 66 effective on the date of the merger, canceling
Net capitalized computer software costs 41 34 existing credit agreements of Arvin and Meritor, and
will be used for general corporate purposes of the
Patents, trademarks and licenses 38 8
company. Borrowings are subject to interest based
Other 61 15
on quoted market rates plus a margin, in addition to
Other Assets $ 427 $ 244
a facility fee, both of which are based on the
company’s credit rating. At September 30, 2000, the
11. OTHER CURRENT LIABILITIES margin over the LIBOR rate was 57.5 basis points,
Other Current Liabilities are summarized as follows which includes the facility fee of 12.5 basis points.
(in millions): At September 30, 2000, the company was in
compliance with all covenants and there have been
September 30, 2000 1999
no events of default.
Accrued product warranties $ 95 $ 95
Accrued taxes other than income taxes 36 27 During September 2000, the company instituted a
commercial paper program with authorized
Accrued restructuring 16 11
borrowings of up to $1 billion. At September 30, 2000,
Environmental reserves 11 10
borrowings under the commercial paper program
Other 96 53
totaled approximately $560 million, at an average
Other Current Liabilities $ 254 $ 196
interest rate of 6.8 percent. Commercial paper
borrowings are backed by the revolving credit facility,
12. OTHER LIABILITIES of which $500 million is classified as long-term debt
Other Liabilities are summarized as follows and $60 million is classified as short-term debt.
(in millions):
The company has $85 million of unsecured lines of
September 30, 2000 1999 credit with interest rates determined at the time of
Environmental reserves $ 27 $ 14 borrowing. At September 30, 2000, there were no
outstanding borrowings under these facilities.
Deferred payments 34 44
These lines of credit expire in September 2001.
Other 52 58
Other Liabilities $ 113 $ 116 Included in the Balance Sheet are $74 million of
9.5-percent company-obligated mandatorily
redeemable preferred capital securities (“capital
13. LONG-TERM DEBT
securities”), issued by a wholly owned subsidiary
Long-Term Debt, net of discount where applicable,
trust of ArvinMeritor, due February 1, 2027, and
is summarized as follows (in millions):
callable in February 2007. The company fully and
September 30, 2000 1999 unconditionally guarantees the subsidiary trust’s
6 7/8 percent notes due 2001 $ 75 $ — obligation under the capital securities.
7.94 percent notes due 2005 50 —
Future minimum lease payments on operating
6 3/4 percent notes due 2008 100 —
leases are $28 million in 2001, $27 million in 2002,
7 1/8 percent notes due 2009 150 — $19 million in 2003, $15 million in 2004, $14 million
6.8 percent notes due 2009 498 498 in 2005 and $58 million thereafter.
Commercial paper 560 —
Bank revolving credit facilities 194 239
Lines of credit and other 93 109
Subtotal 1,720 846
Less: current maturities (183) (44)
Long-Term Debt $ 1,537 $ 802
42

N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S (continued)
14. FINANCIAL INSTRUMENTS 15. CAPITAL STOCK
ArvinMeritor’s financial instruments include The company is authorized to issue 500 million
cash, short- and long-term debt and foreign shares of Common Stock, with a par value of
currency forward exchange contracts. As of $1 per share, and 30 million shares of Preferred
September 30, 2000 and 1999, the carrying values Stock, without par value, of which two million shares
of the company’s financial instruments are designated as Series A Junior Participating
approximated their fair values, based on prevailing Preferred Stock (Junior Preferred Stock). Under the
market prices and rates. It is the policy of the Company Rights Plan, a Preferred Share Purchase
company not to enter into derivative financial Right (Right) is attached to each share of Common
instruments for speculative purposes. The company Stock pursuant to which the holder may, in certain
does enter into foreign currency forward exchange takeover-related circumstances, become entitled to
contracts to minimize the risk of unanticipated gains purchase from the company 1/100th of a share of
and losses from currency rate fluctuations on foreign Junior Preferred Stock at a price of $100, subject to
currency commitments entered into in the ordinary adjustment. Also, in certain takeover-related
course of business. These foreign currency forward circumstances, each Right (other than those held by
exchange contracts relate to purchase and sales an acquiring person) will be exercisable for shares of
transactions and are generally for terms of less than Common Stock or stock of the acquiring person
one year. The foreign currency forward exchange having a market value of twice the exercise price.
contracts are executed with creditworthy banks In certain events, each Right may be exchanged by
and are denominated in currencies of major the company for one share of Common Stock or
industrial countries. The notional amount of 1/100th of a share of Junior Preferred Stock. The
outstanding foreign currency forward exchange Rights will expire on July 7, 2010, unless earlier
contracts aggregated $222 million and $266 million exchanged or redeemed at a redemption price of
at September 30, 2000 and 1999, respectively. $0.01 per Right. Until a Right is exercised, the
ArvinMeritor does not anticipate any material holder, as such, will have no voting, dividend or
adverse effect on its results of operations or other rights as a shareowner of the company.
financial position relating to these foreign currency
The company has reserved approximately 9.5 million
forward exchange contracts.
shares of Common Stock in connection with its
In anticipation of offering debt securities in 1997 Long-Term Incentives Plan (the 1997 LTIP),
October 1998, the company entered into interest rate Directors Stock Plan and Incentive Compensation
agreements in April 1998 to secure interest rates. Plan for grants of non-qualified stock options,
The planned issuance of the debt securities did not incentive stock options, stock appreciation rights,
occur in fiscal 1998, and the company settled certain restricted stock and stock awards to key
interest rate agreements associated with the then- employees and the company’s directors. At
planned offering of debt securities, resulting in a September 30, 2000, there were 6.0 million shares
payment in the first quarter of fiscal 1999 of available for future grants under these plans.
$31 million. The accounting treatment of the
In July 2000, the company’s board of directors
settlement payment was a one-time charge of
authorized a program to repurchase up to $100 million
$31 million ($19 million after-tax, or $0.36 per basic
of its common stock. Under the program, the
and diluted share).
company will purchase shares periodically in the open
market or through privately negotiated transactions as
market conditions warrant and in accordance with
Securities and Exchange Commission rules. As of
September 30, 2000, 3.1 million shares of ArvinMeritor
common stock had been purchased under this
program at an aggregate cost of approximately
$53 million, or an average of $16.98 per share.
43

In September 1999, Meritor’s board of directors Information relative to stock options is as follows
authorized the purchase of up to $125 million of (shares in thousands):
Meritor’s common stock and in February 2000, the
Weighted
board of directors authorized an additional $75 million
Average
for such purpose. Meritor purchased 5,120,400 shares
Exercise
at an aggregate cost of approximately $125 million, or
Shares Price
an average of $24.51 per share, under these programs
before they were suspended in February 2000 in Options outstanding
anticipation of entering into a definitive agreement to on October 1, 1997 276 $ 31.71
merge with Arvin. The treasury stock was cancelled in Granted 2,282 29.87
connection with the merger. Exercised (3) 30.21
Cancelled (220) 29.91
Options outstanding
16. STOCK OPTIONS
Stock options granted under the plans described in at September 30, 1998 2,335 30.08
Note 15 expire ten years from the date of grant and Granted 629 27.37
generally have a vesting period of three years. The Exercised (22) 29.83
stock options granted are exercisable at prices Cancelled (218) 29.62
equal to the fair market value of Common Stock on
Options outstanding
the dates the options are granted; accordingly, no
at September 30, 1999 2,724 29.49
compensation expense has been recognized for the
Granted 729 22.09
stock option plans. All Meritor option quantities and
Conversion of Arvin options
exercise prices have been adjusted for the one
at July 7, 2000 3,118 28.10
Meritor share for 0.75 ArvinMeritor shares exchange
Exercised — —
ratio as part of the merger (see Note 3).
Cancelled (176) 29.96
Upon completion of the merger, each outstanding
Options outstanding
option to purchase one share of Arvin common
at September 30, 2000 6,395 $ 28.04
stock was converted into an option to purchase one
Exercisable at September 30, 1998: 85 $ 31.73
share of ArvinMeritor common stock, plus $1.00 per
Exercisable at September 30, 1999: 621 30.42
share reduction of the exercise price. The converted
Exercisable at September 30, 2000: 4,878 28.77
options generally expire ten years from the date of
the original grant and vested immediately upon the
merger being consummated. The Arvin stock
options originally granted were exercisable at prices
not less than the fair market value of Arvin’s
common stock on the dates the options were
granted. Accordingly, no compensation expense has
been recognized for the stock option plans. The
Arvin stock options were valued using the
Black-Scholes options model and the fair value of
the options was included in the purchase price of
Arvin, as described in Note 3. All of the converted
options are exercisable at prices greater than the fair
market value of ArvinMeritor common stock on the
date of the conversion.
44

N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S (continued)
Options outstanding at September 30, 2000, are The accumulated benefit obligation is summarized
summarized as follows (shares in thousands): as follows (in millions):
Weighted average Accumulated benefit obligation:
Number of options Remaining Exercise price
2000 1999
Price Range Outstanding Exercisable life (yrs) Outstanding Exercisable
Retirees $ 397 $ 384
$17.01-$23.00 1,914 1,200 8.3 $ 20.45 $ 19.52
Employees eligible to retire 22 19
$23.01-$29.00 983 626 5.8 $ 26.88 $ 26.49
Employees not eligible to retire 46 34
$29.01-$35.00 2,459 2,013 6.9 $ 30.17 $ 30.20
Total accumulated benefit obligation $ 465 $ 437
$35.01-$41.00 1,039 1,039 7.9 $ 38.06 $ 38.06
If the company accounted for its stock-based The following reconciles the change in retiree
compensation plans using the fair value method medical accumulated benefit obligation and the
provided by SFAS 123, the company’s 2000, 1999 amounts included in the balance sheet (in millions):
and 1998 net income and earnings per share would
Change in accumulated benefit obligation:
have been reduced to pro forma net income of
$212 million, $188 million and $142 million, 2000 1999
respectively, and pro forma earnings per share of
Accumulated benefit obligation
$4.01, $3.63 and $2.74, respectively. The weighted
at beginning of year $ 437 $ 454
average fair value of options granted was $8.16,
Service cost 2 3
$7.79 and $9.34 per share in 2000, 1999 and 1998,
Interest cost 33 29
respectively. The fair value of each option was
Plan amendments (1) —
estimated on the date of grant using the
Acquisitions 47 2
Black-Scholes pricing model utilizing the following
Divestitures (2) —
assumptions:
Actuarial gains (2) (10)
2000 1999 1998
Benefits paid
Volatility 35.0% 31.0% 31.0%
($36 million in fiscal 1998) (49) (41)
Life 5 years 5 years 5 years
Accumulated benefit
Dividend yield rate 5.0% 2.0% 2.0%
obligation at end of year 465 437
Risk-free interest rate 6.1% 4.8% 5.8%
Items not recognized
in the balance sheet:
17. RETIREMENT MEDICAL PLANS Plan amendments 10 15
ArvinMeritor has retirement medical plans that cover Actuarial losses (150) (157)
the majority of its U.S. and certain non-U.S. Recorded liability
employees and provide for medical payments to
at September 30 $ 325 $ 295
eligible employees and dependents upon retirement.
The components of retirement medical expense are
The weighted average discount rates (using a
as follows (in millions):
June 30 measurement date) were 8.0 percent in
fiscal 2000 and 7.5 percent in fiscal 1999. For
2000 1999 1998
measurement purposes, a 6.9-percent and
Service cost $2 $ 3 $ 2
8.3-percent annual increase in the pre- and post-65
Interest cost 33 29 28
per capita cost of covered health care benefits was
Amortization of
assumed for 2000. The rate was assumed to
unrecognized amounts (1) 1 (1)
decrease gradually to 5.0 percent for 2011 and
Retirement medical expense $ 34 $ 33 $ 29
remain at that level thereafter.
45

Increasing the health care cost trend rates by The following reconciles the change in pension
one percentage point would increase the projected benefit obligation, the change in plan
accumulated obligation at September 30, 2000, by assets and the amounts included in the balance
approximately $40 million and would increase total sheet (in millions):
expense by approximately $4 million. Decreasing
Change in projected benefit obligation:
the health care cost trend rates by one percentage
point would decrease the accumulated obligation 2000 1999
at September 30, 2000, by approximately Projected benefit obligation
$36 million and would decrease total expense at beginning of year $ 445 $ 318
by approximately $3 million. Service cost 22 21
Interest cost 37 22
Participant contributions 1 2
18. RETIREMENT PENSION PLANS
ArvinMeritor sponsors defined benefit pension plans Plan amendments (1) 3
that cover most of its U.S. employees and certain Acquisitions 423 81
non-U.S. employees. Pension benefits for salaried Divestitures (4) —
employees are based on years of credited service Actuarial (gains) losses (21) 19
and compensation. Pension benefits for hourly
Special termination benefits — 1
employees are based on years of service and
Benefits paid (21) (19)
specified benefit amounts. The company’s funding
Foreign exchange rate changes (29) (3)
policy provides that annual contributions to the
Projected benefit obligation
pension trusts will be at least equal to the minimum
at end of year 852 445
amounts required by ERISA in the U.S. and the
actuarial recommendations or statutory
requirements in other countries. Change in plan assets:
Certain of the company’s non-U.S. subsidiaries Fair value of plan assets
provide limited non-pension benefits to retirees
at beginning of year 368 237
in addition to government-sponsored programs.
Actual return on plan assets 29 10
The cost of these programs is not significant to
Employer contributions 40 30
the company. Most retirees outside the U.S. are
Plan participants’ contributions 1 2
covered by government-sponsored and
Acquisitions 443 109
-administered programs.
Divestitures (2) —
Net pension expense consisted of the following
Benefits paid (21) (19)
(in millions):
Foreign exchange rate changes (28) (1)
2000 1999 1998 Fair value of plan assets at end of year 830 368
Service cost $ 22 $ 21 $ 15 Funded status (22) (77)
Interest cost 37 22 18 Items not recognized in the balance sheet:
Assumed return Actuarial losses 26 41
on plan assets (40) (25) (15) Prior service cost 9 15
Amortization of Net initial asset (9) (12)
unrecognized amounts 5 1 3 Net prepaid (accrued) pension costs $ 4 $ (33)
Net pension expense $ 24 $ 19 $ 21
46

N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S (continued)
Amounts recognized in the balance sheet at The deferred tax expense represents tax deductions
September 30 consisted of: related to previously accrued expenses. The
deferred tax benefit represents the tax impact
2000 1999
related to certain accrued expenses that have been
Prepaid pension asset $ 78 $ 66 recorded for financial statement purposes but are
Accrued pension liability (76) (104) not deductible for income tax purposes until paid.
Intangible asset 2 5
Net deferred income tax benefits included in Other
Net amount recognized $ 4 $ (33)
Current Assets in the accompanying Consolidated
Balance Sheet consist of the tax effects of temporary
The projected benefit obligation, accumulated benefit differences related to the following (in millions):
obligation, and fair value of plan assets for the
September 30, 2000 1999
pension plans with accumulated benefit obligations
Accrued product warranties $ 32 $ 31
in excess of plan assets were $73 million, $61 million
Accrued compensation and benefits 36 26
and $0 million, respectively, as of September 30, 2000,
Accrued restructuring 5 3
and $235 million, $177 million and $80 million,
Inventory costs 29 (7)
respectively, as of September 30, 1999.
Receivables 16 5
Assumptions used (June 30 measurement date):
Other-net 4 25
2000 1999 Current deferred income taxes $ 122 $ 83
Discount rate 6.3-8.0% 6.0-7.5%
Compensation increase rate 2.8-4.5% 2.5-4.5%
Net deferred income tax benefits included in Other
Long-term rate of return
Assets in the accompanying Consolidated Balance
on plan assets 9.0-9.5% 9.0% Sheet consist of the tax effects of temporary
differences related to the following (in millions):
The company also sponsors certain defined
September 30, 2000 1999
contribution savings plans for eligible employees.
Accrued retirement medical costs $ 111 $ 100
Expense related to these plans was $8 million,
Property (99) (54)
$6 million and $6 million for fiscal 2000, 1999 and
Pensions (16) 8
1998, respectively.
Loss and credit carryforwards 38 30
Other (10) 4
19. INCOME TAXES
Subtotal 24 88
The components of the Provision for Income Taxes
Valuation allowance (15) (17)
are summarized as follows (in millions):
Long-term deferred income taxes $ 9 $ 71
2000 1999 1998
Current tax expense:
U.S. $ 17 $ 38 $ 37
Foreign 91 64 66
State and local 1 10 9
Total current
tax expense 109 112 112
Deferred tax expense (benefit):
U.S. 30 13 (4)
Foreign (3) 3 (3)
State and local 5 1 (3)
Total deferred tax
expense (benefit) 32 17 (10)
Provision for income taxes $ 141 $ 129 $ 102
47

Management believes it is more likely than not that 20. SUPPLEMENTAL FINANCIAL
current and long-term deferred tax benefits will INFORMATION
2000 1999 1998
reduce future current income tax expense and
payments. Significant factors considered by (In millions)
management in its determination of the probability Statement of income data:
of the realization of the deferred tax benefits Maintenance and
included: (a) historical operating results, repairs expense $ 86 $ 74 $ 72
(b) expectations of future earnings and (c) the
Research, development
extended period of time over which the retirement
and engineering expense 115 117 111
medical liability will be paid. The valuation allowance
Rental expense 26 23 18
represents the amount of tax benefits related to net
Statement of cash flows data:
operating loss and tax credit carryforwards, which
Interest payments $ 95 $ 61 $ 43
management believes are not likely to be realized.
Income tax payments 100 95 116
The carryforward periods for $20 million of net
Distribution tax payment — — 72
operating losses and tax credit carryforwards expire
between 2001 and 2010. The carryforward period
for the remaining net operating losses and tax 21. CONTINGENT LIABILITIES
credits is indefinite. Federal, state and local requirements relating to the
discharge of substances into the environment, the
The company’s effective tax rate was different from
disposal of hazardous wastes and other activities
the U.S. statutory rate for the reasons set forth below:
affecting the environment have, and will continue to
have, an impact on the manufacturing operations of
2000 1999 1998
the company. Thus far, compliance with environmental
Statutory tax rate 35.0% 35.0% 35.0%
requirements and resolution of environmental claims
State and local income taxes 1.2 2.3 1.6
have been accomplished without material effect on
Foreign income taxes 1.4 1.1 2.7
the company’s liquidity and capital resources,
Recognition of tax loss
competitive position or financial statements.
carryforwards — — (2.0)
The company has been designated as a potentially
Sale of business –
responsible party at 10 Superfund sites, excluding
basis difference — (1.2) —
sites as to which the company’s records disclose no
Tax on undistributed
involvement or as to which the company’s potential
foreign earnings 0.7 1.2 1.6
liability has been finally determined. Management
Other (0.1) 0.4 1.1
estimates the total, reasonably possible costs the
Effective tax rate 38.2% 38.8% 40.0%
company could incur for the remediation of Superfund
sites at September 30, 2000, to be approximately
The income tax provisions were calculated based $20 million, of which $13 million has been accrued.
upon the following components of income before
Various other lawsuits, claims and proceedings have
income taxes (in millions):
been asserted against the company, alleging
violations of federal, state and local environmental
2000 1999 1998
protection requirements, or seeking remediation of
U.S. income $ 139 $ 160 $ 86
alleged environmental impairments, principally at
Foreign income 230 173 170
previously disposed-of properties. For these
Total $ 369 $ 333 $ 256
matters, management has estimated the total,
reasonably possible costs the company could incur
No provision has been made for U.S., state or at September 30, 2000, to be approximately
additional foreign income taxes related to $50 million, of which $25 million has been recorded.
approximately $208 million of undistributed earnings
of foreign subsidiaries that have been or are
intended to be permanently reinvested.
48

N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S (continued)
Based on its assessment, management believes that Segment information is summarized as follows:
the company’s expenditures for environmental capital
Sales (in millions):
investment and remediation necessary to comply with
present regulations governing environmental 2000 1999 1998
protection and other expenditures for the resolution of Light Vehicle Systems $ 2,031 $ 1,575 $ 1,475
environmental claims will not have a material adverse Commercial Vehicle
effect on the company’s liquidity and capital Systems 2,872 2,875 2,361
resources, competitive position or financial
Light Vehicle Aftermarket 209 — —
statements. Management cannot assess the possible
Other 41 — —
effect of compliance with future requirements.
Total $ 5,153 $ 4,450 $ 3,836
Various other lawsuits, claims and proceedings
have been or may be instituted or asserted against
Earnings (in millions):
the company, relating to the conduct of its business,
including those pertaining to product liability, 2000 1999 1998
intellectual property, safety and health, and Operating income:
employment matters. Although the outcome of Light Vehicle Systems $ 149 $ 129 $ 86
litigation cannot be predicted with certainty, and
Commercial Vehicle
some lawsuits, claims or proceedings may be
Systems 221 232 212
disposed of unfavorably to the company,
Light Vehicle Aftermarket 6 — —
management believes the disposition of matters that
Other — — —
are pending or asserted will not have a material
Restructuring costs (26) (28) —
adverse effect on the company’s financial statements.
Merger expenses (10) — —
Gain on sale of business
22. BUSINESS SEGMENT
and other 89 24 —
INFORMATION
Operating income 429 357 298
ArvinMeritor currently has three reportable operating
Other income — 2 —
segments: LVS, CVS and LVA. LVS is a major
Equity in earnings of affiliates 29 35 28
supplier of exhaust systems, aperture systems
Interest rate settlement cost — — (31)
(primarily roof and door systems) and undercarriage
Interest expense, net (89) (61) (39)
systems (primarily suspension, ride and motion
Income before income taxes 369 333 256
control, and wheel products) for passenger cars, light
trucks and sport utility vehicles to original equipment Provision for income taxes (141) (129) (102)
manufacturers. CVS is a leading supplier of drivetrain Minority interests (10) (10) (7)
systems and components, including axles, brakes, Net income $ 218 $ 194 $ 147
and drivelines, for medium- and heavy-duty trucks,
trailers and off-highway equipment and specialty
vehicles. LVA supplies exhaust, ride control, filter
products and accessories to the light vehicle
aftermarket. Business units that are not focused on
automotive products are classified as “Other.” The
company’s Coil Coating division is the primary
component of this classification. Revenues are
attributed to geographic areas, based on the location
of the assets producing the revenue.
49

Depreciation and Amortization (in millions): Information on the company’s geographic areas is
summarized as follows:
2000 1999 1998
Sales by Geographic Area (in millions):
Light Vehicle Systems $ 55 $ 45 $ 44
Commercial Vehicle 2000 1999 1998
Systems 98 86 58 U.S. $ 2,576 $ 2,249 $ 1,848
Light Vehicle Aftermarket 7 — — Canada 441 476 414
Other 2 — — Mexico 235 145 124
Total depreciation Total North America 3,252 2,870 2,386
and amortization $ 162 $ 131 $ 102 France 394 398 411
U.K. 345 271 251
Other Europe 769 584 431
Capital Expenditures (in millions):
Total Europe 1,508 1,253 1,093
2000 1999 1998
Other 393 327 357
Light Vehicle Systems $ 106 $ 55 $ 58
Total sales $ 5,153 $ 4,450 $ 3,836
Commercial Vehicle
Systems 112 115 81
Assets by Geographic Area (in millions):
Light Vehicle Aftermarket 5 — —
Other 2 — — 2000 1999 1998
Total capital expenditures $ 225 $ 170 $ 139 U.S. $ 2,251 $ 1,375 $ 937
Canada 220 150 146
Mexico 149 83 82
Segment Assets (in millions):
Total North America 2,620 1,608 1,165
2000 1999 1998
U.K. 602 346 128
Light Vehicle Systems $ 1,739 $ 701 $ 741
France 256 191 202
Commercial Vehicle
Other Europe 842 402 309
Systems 1,783 1,814 1,049
Total Europe 1,700 939 639
Light Vehicle Aftermarket 751 — —
Other 400 249 282
Other 107 — —
Total assets $ 4,720 $ 2,796 $ 2,086
Segment total assets 4,380 2,515 1,790
Corporate(1) 340 281 296
Sales to one original equipment manufacturer
Total assets $ 4,720 $ 2,796 $ 2,086
represented 18 percent of the company’s sales in
(1) Consists primarily of cash, taxes and prepaid pension costs.
fiscal 2000 and 23 percent of the company’s sales
in fiscal 1999 and 1998. These sales include other
customers acquired or merged with this customer.
No other customer comprised 10 percent or more
of the company’s sales in the three years ended
September 30, 2000.
50

N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S (continued)
23. Q U A R T E R LY F I N A N C I A L I N F O R M A T I O N ( U N A U D I T E D )
The following is a condensed summary of the company’s unaudited quarterly results of operations for fiscal
2000 and 1999 and stock price data for fiscal 2000. The per share amounts are based on the weighted average
shares outstanding for that quarter. All historical per share amounts, including stock prices, prior to the merger
date have been adjusted for the one for 0.75 exchange ratio as part of the merger (see Note 3).
2000 Fiscal Quarters
First Second Third Fourth 2000
(In millions, except share-related data)
Sales $ 1,136 $ 1,196 $ 1,141 $ 1,680 $ 5,153
Cost of sales 966 1,000 956 1,488 4,410
Net income 97 57 40 24 218
Net income per share (basic and diluted) 1.94 1.22 0.86 0.35 4.12
Stock Prices
High $ 28.58 $ 26.50 $ 22.33 $ 18.63 $ 28.58
Low $ 20.00 $ 18.17 $ 14.67 $ 13.75 $ 13.75
First quarter 2000 net income included a gain on sale of business of $83 million ($51 million after-tax, or
$1.02 per share) (see Note 5) and third quarter 2000 net income included a restructuring charge of $26 million
($16 million after-tax, or $0.34 per share) (see Note 6), and a gain on the sale of land of $6 million ($3 million
after-tax, or $0.06 per share). Third and fourth quarters include merger expenses of $2 million and $8 million,
respectively ($1 million and $5 million after-tax, respectively and $0.02 and $0.07 per share, respectively).
1999 Fiscal Quarters
First Second Third Fourth 1999
(In millions, except share-related data)
Sales $ 944 $ 1,163 $ 1,217 $ 1,126 $ 4,450
Cost of sales 815 988 1,033 962 3,798
Net income 40 50 39 65 194
Net income per share (basic and diluted) 0.77 0.97 0.75 1.25 3.75
Third quarter 1999 net income included a restructuring charge of $28 million ($17 million after-tax, or
$0.33 per share) (see Note 6) and fourth quarter 1999 net income included a gain on sale of business of
$24 million ($18 million after-tax, or $0.35 per share) (see Note 5).
24. SUBSEQUENT EVENT (UNAUDITED)
On November 8, 2000, the company announced restructuring actions to realign operations at selected facilities
around the world. These actions are expected to have a total cost of approximately $90 million, with the majority
of the cost accounted for as a restructuring charge of $60 million in the first quarter of 2001. Of the remaining
cost, $15 million will be accounted for as an adjustment to the fair value of liabilities assumed in conjunction
with the ArvinMeritor merger, and $15 million will be accounted for as period costs during 2001, as incurred.
The total restructuring cost of $90 million is comprised of employee severance benefits of $50 million related
to a net reduction of 1,500 employees, asset rationalization costs of $25 million, and equipment relocation and
other costs of $15 million. The costs of these restructuring activities relate approximately 50 percent to CVS,
35 percent to LVS and 15 percent to LVA.
51

SELECTED FINANCIAL DATA
In millions, except per share amounts
Year Ended September 30, 2000 1999 1998 1997 1996
Summary of Operations
Sales
Light Vehicle Systems $ 2,031 $ 1,575 $ 1,475 $ 1,352 $ 1,317
Commercial Vehicle Systems 2,872 2,875 2,361 1,957 1,827
Light Vehicle Aftermarket 209 — — — —
Other 41 — — — —
Total $ 5,153 $ 4,450 $ 3,836 $ 3,309 $ 3,144
$ 218(1) $ 194(1) $ 147(1)
Net income $ 109 $ 114
share(2) 4.12(1) 3.75(1) 2.84(1)
Basic and diluted earnings per N/A N/A
Cash dividends per share(2) 0.64 0.56 0.56 N/A N/A
Financial Position at September 30
Total assets $ 4,720 $ 2,796 $ 2,086 $ 2,002 $ 1,830
Short-term debt 183 44 34 21 8
Long-term debt 1,537 802 313 465 24
Capital securities 74 — — — —
(1) Net income and basic and diluted earnings per share for fiscal year 2000 includes a one-time gain of $89 million ($54 million after-tax, or $1.01 per share) for
the sale of the seat adjusting systems business and other assets, restructuring costs of $26 million ($16 million after-tax, or $0.30 per share), and merger
expenses of $10 million ($6 million after-tax, or $0.11 per share). Net income and basic and diluted earnings per share for fiscal year 1999 includes restructuring
costs of $28 million ($17 million after-tax, or $0.33 per share) and a one-time gain of $24 million ($18 million after-tax, or $0.34 per share) recorded to reflect the
formation of a transmission and clutch joint venture with ZF Friedrichshafen AG. Net income and basic and diluted earnings per share for fiscal year 1998 includes
a one-time charge of $31 million ($19 million after-tax, or $0.36 per share) relating to the settlement of interest rate agreements.
(2) As the company began operations as a stand-alone entity on September 30, 1997, per share data for years ending prior to September 30, 1998, are not applicable.
52

PRO FORMA SUMMARY OF OPERATIONS
Dollars in millions, except per share amounts
Unaudited
Pro Forma(1)
Year Ended September 30, 2000 1999 1998 1997 1996
Summary of Operations
Sales
Light Vehicle Systems $ 3,668 $ 3,474 $ 3,041 $ 2,865 $ 2,728
Commercial Vehicle Systems 2,926 2,941 2,425 2,016 1,876
Light Vehicle Aftermarket 950 906 686 649 607
Other 178 170 116 114 108
Total $ 7,722 $ 7,491 $ 6,268 $ 5,644 $ 5,319
Operating Income(2)
Light Vehicle Systems $ 232 $ 198 $ 155 $ 117 $ 108
Commercial Vehicle Systems 231 244 224 163 141
Light Vehicle Aftermarket 43 72 62 52 47
Other 9 17 3 16 12
Segment Operating Income $ 515 $ 531 $ 444 $ 348 $ 308
Operating margins(2) 6.7% 7.1% 7.1% 6.2% 5.8%
income(3)
Net $ 254 $ 279 $ 236 $ 172 $ 144
Diluted earnings per share(3) $ 3.56 $ 3.66 $ 3.11 $ 2.30 $ 1.85
Cash Activity
Operating cash flow $ 344 $ 415 $ 383 $ 401 $ 307
Depreciation and amortization expense 248 239 190 191 180
Capital expenditures 338 306 248 209 231
Combined stock repurchase programs(4) 175 6 — — —
dividends(4)
Combined aggregate cash 52 54 47 17 13
Combined Financial Position at September 30 (4)
Working capital(5) $ 464 $ 332 $ 426 $ 391 $ 380
Property, plant and equipment 1,348 1,428 1,172 1,113 1,098
Total assets 4,720 4,829 3,633 3,412 3,260
Long-term debt 1,537 1,218 619 695 380
Capital securities 74 89 89 99 —
Short-term debt 183 219 38 75 68
interests(6)
Equity and minority 889 1,033 854 668 1,078
(1) Pro forma financial information presented as if the merger had occurred at the beginning of each fiscal year and reflects (a) the amortization of goodwill from
merger and the elimination of historical Arvin goodwill amortization expense; (b) the adjustment to interest expense for borrowings to fund the Arvin cash
consideration and other financing costs; (c) the income tax effects of (a) and (b) above; and (d) the adjustment of shares outstanding representing the exchange
of one share of Meritor common stock for 0.75 shares of ArvinMeritor common stock and one share of Arvin common stock for one share of ArvinMeritor
common stock, based on the average shares outstanding for each year. Additionally, fiscal 1997 and 1996 include adjustments to reflect the pro forma impact of
the spin-off of Meritor from Rockwell, which occurred in September 1997.
(2) Operating income excludes restructuring and other charges of $30 million, $35 million, $7 million, $29 million and $37 million in fiscal years 2000, 1999, 1998,
1997 and 1996, respectively. Operating income also excludes gain on sale of businesses and other of $89 million, $31 million and $14 million in fiscal years 2000,
1999 and 1996, respectively, and excludes merger-related expenses in fiscal year 2000.
(3) Net income and earnings per share exclude the special items discussed in (2) above and non-operating one-time expenses of $3 million, $1 million and
$25 million in fiscal 2000, 1999 and 1998, respectively, and non-operating one-time income of $16 million and $9 million in fiscal 1997 and 1996, respectively.
(4) Information provided on a combined basis with no pro forma adjustments. Meritor dividends have been restated for the share conversion (see Note 1 of Notes to
Financial Statements). Also, as Meritor began operations as a stand-alone entity on September 30, 1997, dividend information for Meritor for years ending prior to
September 30, 1998 are not applicable.
(5) Working capital consists of all current assets and liabilities, including cash and short-term debt.
(6) Equity amounts for September 1996 for Meritor represent the net investment of Rockwell prior to the spin-off of Meritor on September 30, 1997.
53

CORPORATE RESPONSIBILITY
ARVINMERITOR
AND THE COMMUNITY
ArvinMeritor and its employees have a long tradition ArvinMeritor understands that an educated
of making a difference in the lives of many people in workforce is a critical factor that enhances our
the communities where we work and live. long-term competitiveness. Through these
contributions, we help foster awareness and
In those communities that are home to ArvinMeritor
participation in programs that have a strong focus
facilities, we seek to utilize our human and financial
on engineering, science and technology.
resources in partnership with local, private and
public agencies to achieve measurable We are particularly interested in programs that
improvements in the quality of life. We do so encourage ArvinMeritor employees to volunteer their
through a focus on education, cultural programs, time. By leveraging financial resources and
civic responsibility, health and human services. volunteerism in the community, we can contribute to
long-term solutions, rather than short-term relief.
In fiscal year 2000, hundreds of grants to not-for-
profit organizations were made in ArvinMeritor We will continue to focus on meeting the most
communities worldwide. More than half of those critical needs and determining how the ArvinMeritor
charitable contributions, which total close to $2.5 Contributions Program can best make a significant
million, went to support education. That’s because difference in the future of ArvinMeritor communities.
54

ARVINMERITOR
BOARD OF DIRECTORS
Larry D. Yost Joseph P. Flannery Victoria B. Jackson
Chairman of the Board Chairman of the Board Former President and
Chief Executive Officer President and Chief Executive Officer
Chief Executive Officer DSS/Prodiesel, Inc.
V. William Hunt
Uniroyal Holding, Inc.
Vice Chairman Don J. Kacek
President Chairman of the Board
Robert E. Fowler, Jr.
Former Chairman and Chief Executive Officer
Joseph B. Anderson, Jr.
Chief Executive Officer Advanced Automation
Chairman of the Board and
IMC Global Inc. Technologies, Inc.
Chief Executive Officer
Chivas Industries LLC William D. George, Jr. James E. Marley
Former President and Former Chairman of the Board
Donald R. Beall
Chief Executive Officer AMP Inc.
Former Chairman of the Board
S.C. Johnson Wax
and Chief Executive Officer James E. Perrella
Rockwell International Corporation Chairman of the Board
Ivan W. Gorr
Former Chairman and Ingersoll-Rand Company
Steven C. Beering
Chief Executive Officer
President Emeritus Harold A. Poling
Cooper Tire & Rubber Company
Purdue University Former Chairman of the Board
and Chief Executive Officer
Richard W. Hanselman
Rhonda L. Brooks
Chairman of the Board Ford Motor Company
President
Health Net, Inc.
Exterior Systems Business Martin D. Walker
Owens Corning, Inc. Former Chief Executive Officer
Charles H. Harff
Former Senior Vice President, and Chairman of the Board
John J. Creedon
General Counsel M.A. Hanna Company
Former President and
Secretary
Chief Executive Officer
Rockwell International Corporation
Metropolitan Life
Insurance Company
EXECUTIVE OFFICERS
Larry D. Yost Juan L. De La Riva Terrence E. O’Rourke
Chairman of the Board Senior Vice President Senior Vice President
Chief Executive Officer Corporate Development President, Light Vehicle Systems
and Strategy
V. William Hunt A.R. Sales
Vice Chairman Senior Vice President
Thomas A. Gosnell
President Senior Vice President President, Roll Coater
President, Commercial
Vernon G. Baker, II S. Carl Soderstrom
Vehicle Systems
Senior Vice President Senior Vice President
General Counsel and Secretary Engineering, Quality and
Perry L. Lipe
Senior Vice President Procurement
Gary L. Collins
Chief Information Officer
Senior Vice President Diane M. Stelfox
Human Resources Vice President
William M. Lowe
Vice President Corporate Development
Linda M. Cummins
Controller
Senior Vice President Craig M. Stinson
Communications Senior Vice President
Thomas A. Madden
Senior Vice President President, Exhaust Systems
William K. Daniel
Chief Financial Officer
Senior Vice President Frank A. Voltolina
President, Light Vehicle Vice President
Aftermarket Treasurer
55

AR VINMERITOR, INC. GENERAL INFORMATION
ARVINMERITOR HEADQUARTERS DIVIDEND REINVESTMENT AND
2135 West Maple Road ADDITIONAL INVESTMENTS IN
Troy, MI 48084-7186 ARVINMERITOR COMMON STOCK
Phone: 248-435-1000 EquiServe Trust Company, N.A. provides the
Fax: 248-435-1393 DirectSERVICE Investment Program for
www.arvinmeritor.com ArvinMeritor shareowners, under which current
shareowners may elect to reinvest dividends
INVESTOR RELATIONS and/or make optional cash investments in
Securities analysts and professional additional shares of ArvinMeritor common stock.
investors should contact: The program also allows cash investments in
Investor Relations ArvinMeritor common stock by first-time investors,
248-655-2159 with a $500 minimum initial investment.
Shareowners may also sell their shares through
CORPORATE PUBLIC RELATIONS the DirectSERVICE Investment Program.
Members of the media should contact:
For a brochure and details of the program,
Public Relations
please direct inquiries to:
248-435-7774
DirectSERVICE Investment Program
EquiServe Trust Company, N.A.
SHAREOWNER SERVICES
P.O. Box 2598
Communications about share ownership, book-entry
Jersey City, NJ 07303-2598
accounts, dividend payments, transfer requirements,
Registered shareowners: 800-414-6280
changes of address, lost stock certificates, account
Other interested investors: 800-483-2277
status and sale of shares should be directed to:
EquiServe Trust Company, N.A.
INDEPENDENT AUDITORS
P.O. Box 2500
Deloitte & Touche LLP
Jersey City, NJ 07303-2500
600 Renaissance Center
800-519-3111
Detroit, MI 48243-1704
www.equiserve.com
313-396-3000
For Internet access to account information call
877-843-9327 toll free to receive a password TRANSFER AGENT AND
by mail. REGISTRAR
EquiServe Trust Company, N.A.
E-mail: www.equiserve.com
P.O. Box 2500
Telecommunications Devices for the
Jersey City, NJ 07303-2500
Deaf (TDDs) may be accessed by calling
800-519-3111
201-222-4955.
For copies of annual reports, Forms 10-K and NEW YORK STOCK EXCHANGE
10-Q and other ArvinMeritor publications, Common Stock (Symbol: ARM)
please contact:
ArvinMeritor, Inc. ANNUAL MEETING
2135 West Maple Road The company’s annual meeting of shareowners will
Troy, MI 48084-7186 be held at the ArvinMeritor headquarters at 9 a.m.
Attention: Investor Relations Wednesday, February 14, 2001. A notice of meeting
248-435-1545 and proxy material will be mailed to shareowners on
E-mail: investor.relations@arvinmeritor.com or about December 29, 2000.

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