TROY, Mich. (AP) -- ArvinMeritor Inc. said Monday that it will invest up to $10 million in its commercial vehicle business in Brazil.
Chip McClure, the auto supplier's chairman, president and CEO, said the investment will support ArvinMeritor's expansion into new product segments and new manufacturing technology.
The investment is part of ArvinMeritor's focus on becoming a global commercial vehicle company. Despite the worldwide decline in the automotive industry, the company's production in South America is up 9 percent from a year ago, McClure told journalists in Sao Paulo, Brazil on Monday.
The company announced last week that it had reached a deal to sell its wheels business to Sao Paulo-based Iochpe-Maxion. The business has manufacturing facilities in Brazil and Mexico.
McClure added that the company still plans to sell its body systems business as part of its plan to divest its light vehicle systems businesses.
ArvinMeritor shares rose 58 cents, or 8.3 percent, to $7.57 in afternoon trading.