Commercial Vehicle Group announces plant consolidation to optimize cost structure and improve aftermarket growth

NEW ALBANY, Ohio, July 15, 2020 / PRNewswire / – Commercial Vehicle Group Inc. (the “Company” (Nasdaq: CVGI), a leading supplier of seating systems, electromechanical assemblies, engineering materials products and automotive automation subsystems. ‘warehouses announced the permanent consolidation of its manufacturing activities and distribution facility in Piedmont, Alabama as part of the Company’s cost reduction plan previously announced on May 18.

the Piedmont The facility primarily serves the commercial vehicle aftermarket, covers an area of ​​over 150,000 square feet and employs approximately 49 employees. The work carried out at Piedmont will be transferred to the Company’s manufacturing and distribution plant in Vonore, Tennessee after the closure, which is expected to be largely completed in the fourth quarter of 2020. Vonore will become the new headquarters of CVG’s Commercial Vehicle Aftermarket activity.

“Plant closure decisions are always difficult. We believe that consolidating aftermarket manufacturing and distribution operations into one central location will strengthen our capabilities and improve our competitiveness through reduced lead times, improved on-time delivery and further optimization of our manufacturing structure. costs ”, said Harold Bevis, President and CEO of Commercial Vehicle Group. “We are aware of the impact that this decision will have on our Piedmont employees and the surrounding community and we thank them for their dedication and years of service. We intend to maintain our existing customer service team to ensure customer continuity and a smooth transition for our valued customers. The after-sales business is an important part of CVG, and we believe this strategic decision will allow us to further develop the business and deliver value to all of our stakeholders. ”

The Company will provide assistance to affected employees, including retention benefits and transfer opportunities to other CVG facilities.

About Commercial Vehicle Group, Inc.

Commercial Vehicle Group, Inc. (through its subsidiaries) is a leading supplier of seating systems, electromechanical assemblies, engineering materials products, and warehouse automation subsystems. for many markets including: trucking, military, warehouse automation, bus, agriculture, specialty transportation, mining, industrial equipment and off-road recreational markets. Information on the Company and its products is available on the Internet at www.cvgrp.com.

Forward-looking statements

This press release contains forward-looking statements which are subject to risks and uncertainties. These statements often include words such as “believe”, “anticipate”, “plan”, “expect”, “intend”, “will”, “should”, “could”, “could”, “Project”, “continue”, “probable” and similar expressions. In particular, this press release may contain forward-looking statements about the Company’s expectations for future periods with respect to its plans to improve financial results and improve the Company, the future of the end markets of the Society, including the short term and the potential long term impact of the COVID-19 pandemic on classes 8 and 5-7 North America truck build rates and global construction equipment business performance, expected cost savings, Company initiatives to meet customer needs, organic growth, Company plans to focus on certain segments and markets and the Company’s financial condition or other financial information. These statements are based on certain assumptions that the Company has made in light of its experience as well as its point of view on historical trends, current conditions, expected future developments and other factors it deems appropriate in the future. circumstances. Actual results may differ materially from anticipated results due to certain risks and uncertainties, including, but not limited to: (i) a material weakness in our internal control over financial reporting which could, if not not corrected, cause material misstatement in our financial statements; (ii) future financial restatements affecting the company; (iii) general economic or commercial conditions affecting the markets in which the Company is present; (iv) the Company’s ability to successfully develop or introduce new products; (v) risks associated with doing business in countries and foreign currencies; (vi) increased competition in the medium and heavy truck, construction, agriculture, aftermarket, military, bus and other markets; (vii) the failure of the Company to make or successfully integrate strategic acquisitions and the impact of these acquisitions on business relationships; (viii) the Company’s ability to recognize synergies resulting from the reorganization of sectors; (ix) failure of the Company to successfully manage divestitures; (x) the impact of changes in government regulations on the Company’s customers or on its business; (xi) the loss of business of a major customer, a set of smaller customers or the shutdown of certain commercial vehicle platforms; (xii) the Company’s ability to obtain future financing due to changes in the loan markets or its financial situation; (xiii) the Company’s ability to comply with financial covenants on its credit facilities; (xiv) fluctuation in interest rates or change in the benchmark interest rate relating to the Company’s credit facilities; (xv) the Company’s ability to leverage its cost reduction and strategic initiatives and to cope with rising labor and material costs; (xvi) the volatility and cyclicality of the commercial vehicle market affecting us negatively, including the impact of the current COVID-19 pandemic; (xvii) the geographic profile of our taxable income and changes in valuation of our deferred tax assets and liabilities affecting our effective tax rate; (xviii) changes to national manufacturing initiatives; (xix) the implementation of tax or other changes, by United States or other international jurisdictions, related to products manufactured in one or more jurisdictions where the Company operates (xx) security breaches and other disruptions that could compromise our information systems; (xxi) the impact of disruptions in our supply chain or delivery chains; (xxii) litigation against us; (xxiii) the impact of health epidemics or generalized outbreaks of contagious diseases; and (xxiv) various other risks described under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. There can be no assurance that the statements made in this press release concerning the future events will be achieved. The Company assumes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unforeseen events or changes in future operating results over time. All subsequent written and oral forward-looking statements attributable to the Company or to persons acting on behalf of the Company are expressly qualified in their entirety by such cautionary statements.

SOURCE Commercial Vehicle Group, Inc.

Related links

http://www.cvgrp.com

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