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ArvinMeritor Cutting 1,250 Jobs

Auto parts supplier says it will cut 7 percent of its worldwide staff to help cut costs as weakness persists in the U.S. economy and auto market.

TROY, Mich. (AP) -- Auto parts supplier ArvinMeritor says it will cut 1,250 jobs to help cut costs as weakness persists in the U.S. economy and auto market.

The Troy, Mich., company says the cuts represent about 7 percent of its worldwide staff.

Chief Executive Chip McClure says these "swift and decisive" actions are needed because of softness in all markets and weaker foreign currencies.

Meanwhile, ArvinMeritor says it is looking at other alternatives for its light vehicle systems unity, including a potential sale. In May, ArvinMeritor said it planned to spin off the segment.

The company hopes to save $125 million in 2009 with the job cuts and other cost-cutting efforts.

Also, ArvinMeritor will record a charge of about $190 million in the fourth quarter for certain deferred tax assets.