TROY, Mich. (AP) -- ArvinMeritor Inc., which makes parts for light and commercial vehicles, said Monday that it expects the cost cuts it has made since October to save it about $430 million each year.
The auto supplier said that in February and March it cut nearly 250 jobs and made other cuts that will result in annual savings of $95 million, or $64 million in fiscal year 2009. Those are part of the $335 million in savings the company announced in February.
ArvinMeritor, like other automotive suppliers, has struggled for much of the last year in the face of slumping economies around the world and the continued drop in light vehicle sales.
Since October, the company has announced plans to reduce its global work force by more than 1,800 employees, initiate plant-level furlough programs and close two plants in Ontario.
ArvinMeritor also has cut the pay of its salaried work force, eliminated matching contribution to its U.S. 401(k) program and suspended merit increases for the fiscal year.
In addition, it has cut capital spending, extended plant shutdowns, eliminated company-paid education and training programs, suspended its quarterly dividend, cut annual board pay by 10 percent and eliminated all non-critical discretionary spending.