ArvinMeritor Cutting Senior Executives' Pay By 10%
Pay for about 100 senior executives, including Chief Executive Officer Chip McClure, will be cut by 10%, the company said Monday. The remaining white-collar workers, primarily in the U.S., will have their pay docked 5%. The pay changes take effect Jan. 16.
"Given the pressure in our industry, we must conserve cash and save as many jobs as we can," ArvinMeritor's senior vice president of communications, Lin Cummins, said Monday. "We will continue monitoring the situation."
ArvinMeritor joins Visteon Corp. (VC) in announcing deeper cuts as the U.S. automotive industry continues its downturn. Ford Motor Co. (F) said Monday its 2008 sales fell 20% while General Motors Corp. (GM) dropped 31%. Some suppliers have been aggressively cutting costs in order to survive.
Visteon on Monday shifted 2,050 salaried workers to a four-day work week and cut their pay by 20% to match the reduction. The move is being made to minimize layoffs.
Shares of ArvinMeritor fell 5% or 14 cents to $2.67, and Visteon shares were unchanged at 35 cents.
-By Jeff Bennett, Dow Jones Newswires; (248) 204-5542; jeff.bennett@dowjones.com
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Publié le 05 janvier 2009 Copyright © 2009 Dowjones
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