ArvinMeritor Sets Commodity Surcharge

Auto and truck component maker ArvinMeritor Inc. said late Tuesday it will institute a monthly surcharge for components due to rising materials prices.

“As a result of the sudden and extraordinary surges in the price of steel, energy and other commodities, we are implementing a monthly review and adjustment process on all products,” said Chairman and Chief Executive Officer Chip McClure.

“We have a portfolio of complex products that require varying levels of commodities [and] plan to adjust the surcharge as appropriate for each product line,” he said in a statement.

In its most recent quarterly earnings statement late last month, the company said the unprecedented volatility in commodities markets — including a global shortage of scrap steel, a rapid escalation in the price of critical raw materials such as iron ore, coking coal and metal alloys, and higher fuel and energy costs, would require it to take recovery actions to mitigate rising costs.

ArvinMeritor said last week it is spinning off its automobile business unit to its shareholders and focus on supplying parts for commercial trucks.