ArvinMeritor Inc. plans to cut the base salaries of its executives by 10 percent beginning Jan. 16 in response to a worsening economy.
CEO Charles Chip McClure, CFO Jeffrey Craig, President of Light Vehicle Systems Phil Martens as well as three other top executives at the suburban Detroit auto supplier will see their base salaries cut, according to a company form 8-K filed with the U.S. Securities and Exchange Commission on Monday.
Trimming the executive salaries is part of a broader cost-cutting effort, the company said.
The salary decreases are intended by ArvinMeritor to be temporary, although there can be no assurances as to when the original salary rates will be reinstated, the company said in the filing.
Auto suppliers have been under increasing financial pressure as auto sales and parts orders have sunk to their lowest levels in decades.
ArvinMeritor said in late October it planned to cut about 450 salaried and about 800 hourly positions.
The automotive and commercial vehicle parts supplier posted a net loss of $153 million on revenue of $1.7 billion in its fiscal fourth quarter ending Sept. 28, more than doubling its net loss of $62 million on revenue of $1.6 billion during the same period a year ago.
ArvinMeritor ranks No. 26 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $6.40 billion in 2007.