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2008 Morgan Stanley Global Automotive

Conference

Phil MartensPresident, Light Vehicle Systems

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Forward-Looking StatementsThis presentation contains statements relating to future results of the company (including certain projections and business trends) that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,”“anticipate,” “estimate,” “should,” “are likely to be,” “will” and similar expressions. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to global economic and market cycles and conditions; the demand for commercial, specialty and light vehicles for which the company supplies products; risks inherent in operating abroad (including foreign currency exchange rates and potential disruption of production and supply due to terrorist attacks or acts of aggression); availability and cost of raw materials, including steel and oil; OEM program delays; demand for and market acceptance of new and existing products; successful development of new products; reliance on major OEM customers; labor relations of the company, its suppliers and customers, including potential disruptions in supply of parts to our facilities or demand for our products due to work stoppages; the financial condition of the company’s suppliers and customers, including potential bankruptcies; possible adverse effects of any future suspension of normal trade credit terms by our suppliers; potential difficulties competing with companies that have avoided their existing contracts in bankruptcy and reorganization proceedings; successful integration of acquired or merged businesses; the ability to achieve the expected annual savings and synergies from past and future business combinations and the ability to achieve the expected benefits of restructuring actions; success and timing of potential divestitures; potential impairment of long-lived assets, including goodwill; potential adjustment of the value of deferred tax assets; competitive product and pricing pressures; the amount of the company’s debt; the ability of the company to continue to comply with covenants in its financing agreements; the ability of the company to access capital markets; credit ratings of the company’s debt; the outcome of existing and any future legal proceedings, including any litigation with respect to environmental or asbestos-related matters; the outcome of actual and potential product liability and warranty and recall claims; rising costs of pension and other post-retirement benefits and possible changes in pension and other accounting rules; as well as other risks and uncertainties, including but not limited to those detailed herein and from time to time in other filings of the company with the SEC. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.

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ArvinMeritor a Most Admired Company

• Outside validation from March 17 edition of Fortune magazine

• ArvinMeritor ranked number #3 among the best global automotive suppliers

• Rated for 8 key attributes of reputation: 1. Innovation 2. People management 3. Use of corporate assets 4. Social responsibility 5. Quality of management6. Financial soundness7. Long-term investment 8. Quality of products/services

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Commercial Vehicle Customers Light Vehicle CustomersVolkswagen

7%Chrysler

6%

Ford 2%

Asian Based OEMs 5%

Volvo16%

Other LVS12%

Other CVS18%

Fiat 3%

Asian Based OEMs 7%

Ford 1%

Volkswagen 2%General Motors 2%

PACCAR 3%

International 4%

Daimler 9%

Customer Base2007 Sales

General Motors 1%PSA 2%

65% Commercial

Vehicle

35% Light

Vehicle

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Light Vehicle Systemsis a globally integrated

Tier 1 systems supplier with a robust business portfolio that limits geographic and

customer risk exposure

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

Light Vehicle Systems

Vehicle Dynamics

Steel Wheels

Roof Systems

Window Regulators

Suspension Modules

Latches

Door Modules

MotorsSprings

CHASSIS SYSTEMS

BODY SYSTEMS

WHEELS

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Characteristics of the Best Automotive Suppliers

1. Truly global business model and footprint

2. A diverse product portfolio of new technologies

3. Diverse portfolio of leading customers and platforms

LVS positioned to be one of the best

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Global Business Model and Footprint

North America

38%

Europe46%

SA10%

AP6%

Geographic Sales Mix

Shifting global reach and capability

North America

50%

Europe44%

SA5%

AP4%

2005 2007

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Full Product Pipeline

smart systemsTM products coming to market by 2010

2008 2009 2010

Bod

y Sy

stem

sC

hass

isW

heel

s

HVA780

EUF

HVACC CLAD

NAM

LERNAL

NEM

HIP

PSDEDCM

CGLFI

AA

AD

AS

Launching 45 programs in 2008

Launching 45 programs in 2008

Launching 30 programs

in 2009

Launching 30 programs

in 2009 50% of LVS revenue projected to come from new products by 2010

50% of LVS revenue projected to come from new products by 2010

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Strength in Customer and Platform Mix

Other

Honda

Toyota

Fiat

Nissan

BMW

VW

Chrysler

Ford

PSA

GM

Customer Mix(2007 Value-Added Sales)

Renault

Hyundai

Top Platforms Key Vehicles

VW PQ34/35 Golf, Touareg, Audi A1

Hyundai NF/CM Santa Fe, Sonata

VW PQ24/25 Polo, Ibiza, Audi A2

Renault C Megane, Scenic

Ford Europe C1 Focus, C-MAX, S40/V50

Dodge DR-DE Ram

VW 7L Audi Q7

Peugeot PF1 207

GME Gamma Opel Corsa

Chrysler WK Cherokee, Commander

High concentration with customers based outside N.A.

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The Power of Capability

Leading global customer seeks moon roof supplier-partner with engineering and manufacturing strength in Asia, Europe and North America

ArvinMeritor sourced for new global program using global motor architecture; grows with hot new platform with key Asian derivative; all sourcing in LCCC, including new plant in China

Global Business Model

Needs innovative new productwith added features and competitive cost

Products and Pipeline

Right Customers & Platforms

Leadership in all three areas allows us to win

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Delivering on Priorities for 20081. Radically improve cost base through restructuring

of supply chain and manufacturing network.

2. Improve Free Cash Flow by institutionalizing ArvinMeritor Production System (APS), program management and working capital improvement programs.

3. Capitalize on aggressive growth opportunities in emerging regions with profitable expansion plans.

4. Global alignment of LVS businesses with market-leading OEMs.

5. Improve long-term earnings power of portfolio through launch of smart systems™ applications.

Constancy of purpose

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Aiming for breakeven in 2008 and profitability in 2009

• Few competitors, technology leadership, good customer mix, significant growth opportunities

• Eliminate $20 million annual operating cost

• Maximize synergies with Doors, close Frankfurt plant, consolidate global engineering through off-shore engineering center, revisit customer terms, win new business

• Eliminated 160 positions in Germany and France through consolidation of shared functions, achieved benchmark ER&D and SG&A levels, 100% of Roofs capacity in LCCCs

Difficult Decisions: Fix, Sell or Close Roofs

1. Radically Improve Cost Base Through Restructuring

Why fix?

Goal

Actions

Results

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Footprint Optimization and Increasing Engineering Capability in Growth Regions

Dramatic shift to LCCCs: 7 new facilities & 4 expansions

1. Radically Improve Cost Base Through Restructuring

N. America S. America Europe Asia Pacific

•Toronto•Restructure some labor agreements

•Brussels•Frankfurt

•Expand Puebla

•Expand San Luis Potosi

•Expand Brazil Body Systems

•Extend offering from Venezuela JV

•Expand Lozorno

•Romania

•Changchun•Pune•Waigaoqaio•Wuhu

Engineering•S. America Tech Center

•Consolidate Body Engineering

•Offshore Engineering Center

Production

Out

In

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Record Year for Cost Reductions

Operational improvements accelerating and improving bottom line

1. Radically Improve Cost Base Through Restructuring

• First quarter labor and burden performance substantially exceeded prior year’s achievement.

• Material performance more than 100% higher than the previous year

• APS overdelivering

• Stretching for additional material cost reductions

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Addressing Steel Costs Head-On

Will do what is needed to protect our business

• Steel suppliers asking for substantial price increases, but supplying according to long-term contracts

• Planning for cost increase when contracts reset

• Exploring alternate supply

• Good track record of recovery with most customers, including some indexed contracts

• Challenging discussions ahead with other customers

1. Radically Improve Cost Base Through Restructuring

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2008 Cash Flow Recovery Actions• Scour inventories for efficiencies

– Eliminate warehousing costs– Streamline pipeline costs– Implement more consigned inventory– Increase turns in plants through APS

• Heightened cash management with customers– Enforce terms of existing contracts– Negotiate better terms– Aggressive actions on past due accounts receivable– Carefully monitoring customer credit-worthiness

• Seasonal factors will benefit second half of year

2. Improve Free Cash Flow

Reversing Q1 working capital outflow

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Expanding Rapidly in Asia Pacific

• Able to offer the full product portfolio in China

• Launching 20 new programs in FY 2008

• Building 3 plants– Chassis JV with Chery in

Wuhu - $100 million projected by 2010

– Body Systems roofs facility in Waigaoqiao, China

– Body Systems doors facility in Pune, India

• Tech Center opening in Pune, India

3. Profitable Growth in Emerging Markets

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Growing from Strong Base in South America• YTD sales up 24% in Brazil

– Mercosur now the world's 6th largest automotive market• Potential to double business from all

LVS businesses within region • Leverage existing footprint in the

region to grow presence– Wholly-owned facilities in Brazil

(steel wheels and body system components)

– Existing JV partnership in Andean market (chassis components and modules)

• Announcing new technical center

3. Profitable Growth in Emerging Markets

New LVS Innovation & Technical Center for LVS South America in

Limeira, Brazil

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Hyundai: A Strategic Partner Globally• Already 3rd largest customer in North America before

recent awards• Also supplying a significant amount of business in Korea• New awards expand the relationship and leverage global

capability– Four million smart systemsTM window motors per

year, benefiting from global commonality and reach– First North America application of smart systemsTM

Highly-Integrated Plastic (HIP) door module for the new Hyundai Sonata

– Next generation corporate Hyundai Global Latch to be launched on Sonata; adaptable to other platforms

Light Vehicle Systems: Subtitle4. Global Alignment with the Right OEM Customers

Innovation and delivery build strategic relationships

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Capability, Collaboration and Commercialization

• Globally networked engineering team focused on improving vehicle systems’ performance and integration

• Emphasis on materials engineering generating value– Example: New crash-resistant material for panoramic roofs

improves safety and integrates luxury features

5. Improve Portfolio through Launch of smart systems Products

Commercialization

Collaboration

Capability

• Development contracts for advanced chassis products with four OEMs from multiple regions– Example: Military chassis applications addressing vertical

load management

• Launching 45 new programs this year, including the HIP module for both North America and Europe, a new Chinese latch and global large-opening roof system production

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Composite Coil Spring• Improved fuel economy through weight reduction

– 50 to 60% weight reduction vs. steel equivalent– Typical weight savings for a passenger car with

four coils is 12 – 14 lbs. – Typical weight savings for a light truck with two

coils is 12 – 15 lbs.

• Material cost and durability are competitive with steel

• Corrosion protection is not required

• Environmentally friendly: no quench and temper

• Flexible design

• Scalable manufacturing can be located close to OEM

5. Improve Portfolio through Launch of smart systems Products

Innovation begins with understanding customer needs

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Delivering on Priorities for 20081. Radically improve cost base through restructuring

of supply chain and manufacturing network.

2. Improve Free Cash Flow by institutionalizing ArvinMeritor Production System (APS), program management and working capital improvement programs.

3. Capitalize on aggressive growth opportunities in emerging regions with profitable expansion plans.

4. Global alignment of LVS businesses with market-leading OEMs.

5. Improve long-term earnings power of portfolio through launch of smart systems™ applications.

Constancy of purpose

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Financial Review

Mary LehmannSenior VP, Strategic Initiatives, and

Treasurer

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2008 Industry Planning AssumptionsCalendar Year Basis

North America Other Regions/Metrics

U.S. GDP growth 2.2% Europe GDP growth 1.9%

U.S. light vehicle industry sales (millions) 15.5 W. Europe light vehicle industry

sales (millions) 17.1

Class 8 truck production (000) 235-255 Europe medium & heavy truck production (000) 540-550

Class 5-7 truck production (000) 180 Europe trailer production 165

Trailer production (000) 250 Asia medium & heavy truck production (000) 1,340

CV aftermarket industry growth ex. pricing Flat Steel price change Increasing

MRAP production 11,900 South America light vehicle production (millions) 3.8

1.5%

160-175

195-210

1.7%

Much Worse

17.1

560-570

15.5

Higher

220-240

180-195

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2008 Internal Planning AssumptionsYear-to-Date Trends

Initiative Progress

Improve CVS Europe Operational Effectiveness

Performance Plus Cost Reductions

Direct Material

Overhead

Manufacturing Labor & Burden

Commercial Vehicle Aftermarket Growth

Commercial and Legal Dispute with Customer

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Performance Plus Achievement of Run-Rate Cost Savings in 2008

0

20

40

60

80

100

120

140

160

180

200

220

240

Oct Nov Dec Jan Feb Mar Apr May Jun Jul SeptAug

Risk Adjustment

Annualized EBITDA Impact from Cost Saving Actions$ Millions

Oct

$75M Period Savings

$115 M

$197MDecember Implementation Plan

$232MTeam TargetsIdeas that will save

$75 million per year had been

implemented by the end of February

Period savings for the first fiscal

quarter were $12 million

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Forecast Update

• Reaffirming full-year guidance at $1.40-$1.60 EPS from continuing ops before special items and cash flow guidance of $(75)-$(125) million

Fiscal Q2 Compared to Q1Performance Plus Cost Reductions

Direct Material +Overhead +Labor & Burden +

Military, Off-Highway and Aftermarket +Normal Tax Rate +

Europe Truck Production and Productivity +

Steel Prices -

Operational improvements overwhelming market factors

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Q&A