NEW ALBANY, Ohio, July 15, 2020 /PRNewswire/ -- Commercial
Vehicle Group Inc. (the "Company") (Nasdaq: CVGI), a leading
supplier of seating systems, electro-mechanical assemblies,
engineered material products, and warehouse automation subsystems
announced the permanent consolidation of its manufacturing and
distribution facility in Piedmont,
Alabama in connection with the Company's cost reduction plan
previously announced on May 18.
The Piedmont facility primarily
serves the commercial vehicle aftermarket, is more than 150,000
square feet in size, and employs approximately 49 employees.
The work performed at the Piedmont
facility will be transferred to the Company's manufacturing and
distribution facility in Vonore,
Tennessee following the closure, which is expected to be
substantially completed in the fourth quarter of 2020. Vonore will become the new headquarters for
CVG's Commercial Vehicle Aftermarket business.
"Plant closure decisions are always difficult. We believe
consolidating the 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
cost structure," said Harold Bevis,
President and Chief Executive Officer of Commercial Vehicle Group.
"We are mindful of the impact 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 seamless
transition for our valued customers. The aftermarket business is an
important part of CVG, and we believe this strategic move will
further enable us to grow the business and deliver value to all our
stakeholders. "
The Company will provide assistance to affected employees
including retention benefits and opportunities to transfer to other
CVG facilities.
About Commercial Vehicle Group, Inc.
Commercial Vehicle Group, Inc. (through its subsidiaries) is a
leading supplier of seating systems, electro-mechanical assemblies,
engineered material products, and warehouse automation
subsystems for many markets including the following: trucking,
military, warehouse automation, bus, agriculture, specialty
transportation, mining, industrial equipment and off-road
recreational markets. Information about the Company and its
products is available on the internet at www.cvgrp.com.
Forward-Looking Statements
This press release contains forward-looking statements that are
subject to risks and uncertainties. These statements often include
words such as "believe", "anticipate", "plan", "expect", "intend",
"will", "should", "could", "would", "project", "continue",
"likely", and similar expressions. In particular, this press
release may contain forward-looking statements about Company
expectations for future periods with respect to its plans to
improve financial results and enhance the Company, the future of
the Company's end markets, including the short-term and potential
longer-term impact of the COVID-19 pandemic on Class 8 and Class
5-7 North America truck build
rates and performance of the global construction equipment
business, expected cost savings, the Company's initiatives to
address customer needs, organic growth, the Company's plans to
focus on certain segments and markets and the Company's financial
position 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 perspective on historical trends, current
conditions, expected future developments and other factors it
believes are appropriate under the circumstances. Actual results
may differ materially from the anticipated results because of
certain risks and uncertainties, including but not limited to: (i)
a material weakness in our internal control over financial
reporting which could, if not remediated, result in material
misstatements in our financial statements; (ii) future financial
restatements affecting the company; (iii) general economic or
business conditions affecting the markets in which the Company
serves; (iv) the Company's ability to develop or successfully
introduce new products; (v) risks associated with conducting
business in foreign countries and currencies; (vi) increased
competition in the medium- and heavy-duty truck markets,
construction, agriculture, aftermarket, military, bus and other
markets; (vii) the Company's failure to complete or successfully
integrate strategic acquisitions and the impact of such
acquisitions on business relationships; (viii) the Company's
ability to recognize synergies from the reorganization of the
segments; (ix) the Company's failure to successfully manage any
divestitures; (x) the impact of changes in governmental regulations
on the Company's customers or on its business; (xi) the loss of
business from a major customer, a collection of smaller customers
or the discontinuation of particular commercial vehicle platforms;
(xii) the Company's ability to obtain future financing due to
changes in the lending markets or its financial position; (xiii)
the Company's ability to comply with the financial covenants in its
debt facilities; (xiv) fluctuation in interest rates or change in
the reference interest rate relating to the Company's debt
facilities; (xv) the Company's ability to realize the benefits of
its cost reduction and strategic initiatives and address rising
labor and material costs; (xvi) volatility and cyclicality in the
commercial vehicle market adversely affecting us, 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 impacting our effective tax
rate; (xviii) changes to domestic manufacturing initiatives; (xix)
implementation of tax or other changes, by the United States or other international
jurisdictions, related to products manufactured in one or more
jurisdictions where the Company does business (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 widespread outbreak of
contagious disease; and (xxiv) various other risks as outlined
under the heading "Risk Factors" in the Company's Annual Report on
Form 10-K for fiscal year ending December 31, 2019.
There can be no assurance that statements made in this press
release relating to future events will be achieved. The Company
undertakes no obligation to update or revise forward-looking
statements to reflect changed assumptions, the occurrence of
unanticipated events or changes to future operating results over
time. All subsequent written and oral forward-looking statements
attributable to the Company or persons acting on behalf of the
Company are expressly qualified in their entirety by such
cautionary statements.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/commercial-vehicle-group-announces-plant-consolidation-to-optimize-cost-structure-and-enhance-aftermarket-growth-301094250.html
SOURCE Commercial Vehicle Group, Inc.