ArvinMeritor Joins Joint Venture to Supply New Kia Plant

Door-module plant in Slovakia will deliver JIT

August 28, 2006 -- ArvinMeritor Inc. reports its Light Vehicle Systems (LVS) business group has formed a joint venture in Slovakia, to perform final assembly of fully integrated door modules for a new Kia Motors Corp. plant nearby. The partner, like Kia Motors is a Korean company -- Pyeong Hwa Automotive.

The new plant will be in Kysucke Nove Mesto, Slovakia, 20 kilometers from Kia's plant in Teplicka nad Vahom. The finished door modules will be delivered just-in-time and sequenced to the new Kia plant.

ArvinMeritor and PHA also have various license and supply agreements for door module design and components for Hyundai Motor Co. in Korea and the United States.

A supplier of a variety of integrated systems, modules, and components to the global auto industry, ArvinMeritor began producing components and systems in Central and Eastern Europe in 1992. Its plant in Slovakia will be its seventh in the region.

"Winning such a prestigious contract with Kia Motors is one more example of how our door-module strategy continues to gain global customer acceptance," said Deborah Henderson, v.p. and general manager of Door Systems for LVS.

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