Rakesh SachdevSenior Vice President and President of Asia PacificPresident of Asia Pacific

ArvinMeritor, Inc.

2008 Automotive News China Conference

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Rakesh SachdevRakesh SachdevSenior Vice President and President, Asia PacificSenior Vice President and President, Asia Pacific

Company Profile

• Premier global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry

• Serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets, and light vehicle manufacturers

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light vehicle manufacturers• $6.4 billion global supplier to the motor vehicle industry • Approximately 18,000 employees around the world• One-hundred three locations in 24 countries on five

continents• Headquarters in Troy, Mich.• New York Stock Exchange symbol: ARM• www.arvinmeritor.com

* Source: Fortune, April 17, 2006

Rated One of America’s Most Admired Companies for 2008

• Ranked 3rd in the Motor Vehicle Parts category by Fortune Magazine

• Eight key attributes ofreputation:

• Innovation

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• Innovation • People management • Use of corporate assets • Social responsibility • Quality of management• Financial soundness• Long-term investment • Quality of products/services

Global Footprint

• Approximately 18,000 Employees

• 63 Manufacturing Facilities

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Facilities

• 29 Administrative Offices/Technical Centers

• 11 Warehouses

• 24 Countries

• 5 Continents

Light Vehicle Systems Product Portfolio

Vehicle Dynamics

CHASSIS SYSTEMS

Roof Systems

Window Regulators

Latches

Door Modules

BODY SYSTEMS

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smart systems™ smart systems™ smart systems™ smart systems ™ smart systems™ smart sys

Suspension Modules

SpringsMotors

Steel Wheels

WHEELS

Commercial Vehicle Systems Product Portfolio

Drive Axles

Steer Axle

Braking System (wheel ends and brakes)

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Trailer Axle

Trailer Suspension System

Commercial Vehicle Off-Highway Applications and Products

Loader

Crane

Vehicles ArvinMeritor Product

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Crane

Paving

Specialty

MobilityMobility EnvironmentEnvironment

SafetySafety

ArvinMeritor’s Vision:ArvinMeritor’s Vision:To be a leading global To be a leading global provider of innovative provider of innovative

customer solutions customer solutions that enhance mobility, that enhance mobility,

safety and the safety and the environment.environment.

Discussion Points

• Economic growth in Asia continues to be strong, driving increased transportation and construction.– Despite the recent slow down in global markets, long-term

prospects for Asia remain encouraging.– Accelerated growth will have significant impact on society and

the environment.

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the environment.

• Transportation and construction industries need to assume responsibility in this journey– Mobility, Safety and Environment

• Rewards to both industry and society are significant

Asia Pacific Has Led World Economic Growth In the Past Five Years

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China and India are Projected to Account for Close to Half of the Global GDP

2.5

3.0

3.5

China

India

Real GDP Growth2005-2015

Gro

wth

Rat

e (B

ase=

2005

)

Regional Share of World Gross Domestic Product

2004India2%

China4%

Japan12%

EU34%

US28%

Other20%

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1.0

1.5

2.0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Thailand

Source: Economist Intelligence Unit “Emerging Economies Market Indicators”; BAH Analysis

GermanyUnited KingdomUnited StatesG

row

th R

ate

(Bas

e=

2050 Estimate

Japan4%

EU15%

US26%

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India17%

China28%

Source: Business Week August 22/29, 2005

India’s Economy is Tracking China with a Ten Year Lag

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Consumer Goods, Tourism and Goods Transportation are Increasing

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rnat

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l Tou

rism

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S$

BN

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Source: China National Bureau of Statistics Inte

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Successful Sectors In China’s Economic ExpansionSuccessful Sectors In China’s Economic Expansion

Infrastructure Development in Asia is Increasing as a Result

BANGLADESH

BHUTAN

Pradesh

Punjab

Rajasthan

Uttar Pradesh

Gujarat

Bihar

Meghalava

Assam

Manipur

Delhi

Srinagar

Jammu

Simla

AgraJaipur Lucknow

AllahabadBernares Patna

Asansol

JabalpurCalcutta

Siliguri

New Delhi

Kanpur

Kandla GandhinagarBhopal

Raipur

Dispur

Baroda

BANGLADESH

BHUTAN

Pradesh

Punjab

Rajasthan

Uttar Pradesh

Gujarat

Bihar

Meghalava

Assam

Manipur

Delhi

Srinagar

Jammu

Simla

AgraJaipur Lucknow

AllahabadBernares Patna

Asansol

JabalpurCalcutta

Siliguri

New Delhi

Kanpur

Kandla GandhinagarBhopal

Raipur

Dispur

Baroda

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Goa

Maharashtra

Daman

Kerala

Tamil Nadu

Nagpur

Bhubaneswar

Hyderabad

Bangalore

Calicut

Madurai

Trivandrum

Raipur

Bombay

Poona

Vishakhapatnam

Guntakal

Madras

Goa

Maharashtra

Daman

Kerala

Tamil Nadu

Nagpur

Bhubaneswar

Hyderabad

Bangalore

Calicut

Madurai

Trivandrum

Raipur

Bombay

Poona

Vishakhapatnam

Guntakal

Madras

Residential, Commercial and Road Construction are Key SectorsResidential, Commercial and Road Construction are Key Sectors

China and India will be Among the Largest Construction Markets in the World

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EXAMPLE CHINA2006 Market Size1

(Unit 000’s)

Growth Trajectory7-Yr CAGR

11%

9%

Light and Commercial Vehicles are Key Beneficiaries of the Economic Development

Heavy Truck/Trailer >6T

Car & Light Truck

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11%

5%

Sources: Global Insight, CSM and ARM Analysis

Heavy Truck/Trailer >6T

Bus & Coach >7m

Wheeled Construction 10%

95

With Growth Comes Impact

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SafetySafety• Increased traffic

accidents and fatalities

EnvironmentEnvironment• Reduction in air

quality

MobilityMobility• Traffic Congestion• Wear and tear on

infrastructure

20

25

30

Vehicle Populations (China)

In M

illio

n V

ehic

les

40.9%

36.1%

30.3%

Traffic Congestion Creates the Need for Efficient Movement of People and Goods

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10

15

2000 2001 2002 2003 2004 2005 2006

Civil Private

In M

illio

n V

ehic

les

5.3% 18.3%

54.9%

Road Quality and Traffic Accidents are Becoming Major Safety Concerns

• In 2007, more than 770,000 traffic accidents occurred in China

• Accidents resulted in direct economic

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direct economic losses of RMB 3.5 Bn

• Key factors:– Driver neglect– Traffic congestion– Road conditions

More People Will Pay the Ultimate Consequence

Trends in Traffic Accident Deaths; China, India and Japan

Over ½ million people were injured due to traffic accidents in Over ½ million people were injured due to traffic accidents in 20072007Sources: OECD, ESCAP, IRF and World Bank

Global Air Pollution Illustration

20 Major Cities: Air Pollution Comparison

Air Quality is Being Impacted

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Source: European Space Agency (ESA), World Health Organization (WHO)

Rising Fuel Consumption is Expected to Create a Huge Supply Deficit Over Time

300

400

500

600

700In

Mill

ion

Tons

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China Relying On Imports To Meet More Than China Relying On Imports To Meet More Than 5050% of Demand% of Demand

0

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300

1990 1995 2000 2004 2005 2006 2007 2020

Domestic Import

In M

illio

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Identifying Solutions:Identifying Solutions:

Addressing the Fall Addressing the Fall

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Addressing the Fall Addressing the Fall OutOut

With Growth Comes Responsibility

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SafetySafety• Advanced

technologies• Electronics• Smart Systems

EnvironmentEnvironment• Hybrid technology• Fuel cells• Advanced

powertrain

MobilityMobility• Public transportation• Mass transit• Shift to semi-trailer• Larger buses

Slide denotes just a few examples of many possible solutions.

80,000

100,000

120,000

140,000

Premium CAGR: 34%

High End CAGR: 19%

Chi

na B

us &

Coa

ch P

rodu

ctio

n

Larger Bus and Coaches will Support Increased Demand for Public Transportation

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0

20,000

40,000

60,000

2005 2006 2007 2008 2009 2010 2011 2012 2013

Regular CAGR: (1.6%)

Chi

na B

us &

Coa

ch P

rodu

ctio

n

Source: ARM Analysis

Effective People Movement Will Reduce Traffic CongestionEffective People Movement Will Reduce Traffic Congestion

Major Cities Are Adopting Bus Rapid Transit (BRT) Systems to Bolster Public Transportation

• Resolve the traffic problem

• Encourage the public transportation system

• Improve the safety and reliability

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and reliability• Energy

economization and environmental protection

200

250

300

350

400

Trailer Sales

Units (000‘s)

Mix Shift to Heavy Duty Trucks & Trailers

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0

50

100

150

'08 '09 '10 '11 '12 '13

Trailer Sales

Source: “CVehicle” – 2006/2007 Partial; JD Power, CVS Team Analysis

Truck Transportation will Capitalize on Infrastructure DevelopmentTruck Transportation will Capitalize on Infrastructure Development

OEM and Tier One Suppliers Play a Significant Role in Improving Traffic Safety

• Electronic Body Systems

• Vehicle Dynamic Systems

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• Lightweight Systems

• Higher Efficiency Systems

Advanced Powertrains Offer a Solution to Fuel Efficiency and Emissions Control

Battery-Electric Pickup and delivery vehicle

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Class 8 Hybrid Diesel/Electric

Impact on Vehicle Manufacturers and Suppliers

• Shift in vehicle production mix– Larger more efficient vehicles– Emphasis on safety and comfort– Increasing need for fuel efficiency and emissions

reduction

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reduction– Custom products designed for vehicles in Asian

market• Growth opportunities• Tremendous revenue potential

Impact on Society

• Reduce the global footprint• Better air quality• Safer travel• Longer-lasting infrastructure

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Asia Must Lead, Not FollowAsia Must Lead, Not Follow

Q&A

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Q&A