Meritor, Inc. (NYSE: MTOR) today provided an update on its global operations in response to the continued spread and impact of COVID-19.
“The COVID-19 pandemic has resulted in unprecedented uncertainty in the global commercial vehicle industry and economies around the world,” said Jay Craig, CEO and president of Meritor. “In light of rapidly evolving market conditions, and in accordance with the guidance of global health professionals, we made the difficult but necessary decision, along with many of our customers, to suspend production at most of our global commercial truck manufacturing facilities. We are also taking proactive and decisive actions to reduce costs and increase our financial flexibility. Meritor is well capitalized, and I am confident that our financial strength, the continued execution of our M2022 plan and our commitment to serving our customers will enable us to successfully navigate this challenging period.”
Temporary Facility Closures
In light of the rapidly evolving situation related to COVID-19, and due to related market conditions, Meritor will halt production at most of its commercial truck facilities throughout North and South America, India and Europe on a temporary basis. As part of the transition, a significant portion of Meritor’s hourly workforce across its manufacturing facilities will be laid off.
The company will evaluate operating conditions and consider reopening the facilities once it is safe to do so, and based on information and guidance from local government and health authorities.
The company’s Trailer and Industrial businesses remain in operation as customer order activity continues. Meritor’s Industrial customers are producing vehicles for the defense, bus and coach, terminal tractor, fire and rescue and off-highway end markets which are deemed critical in the response to the current healthcare crisis. Meritor’s Aftermarket business is also fully operational to maintain the supply of critical replacement parts to the vital truck and trailer transportation network.
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SOURCE: Meritor
