Key Developments: Commercial Vehicle Group, Inc. (CVGI.O)
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Latest Key Developments
Commercial Vehicle Group, Inc. Announces Closure And Consolidation of Liberec, Czech Republic Facility
Commercial Vehicle Group, Inc. announced a restructuring plan which includes the closure and consolidation of one of its facilities located in Liberec, Czech Republic. The 115 thousand square foot facility was primarily related to the manufacturing and assembly of wiring harness products and will be consolidated into an existing CVG facility located in the Czech Republic. No employees will be impacted as a result of this move and the Company expects the restructuring to be completed by January 2010.
Commercial Vehicle Group, Inc. Announces Planned Closure Of Norwalk, OH Facility
Commercial Vehicle Group, Inc. announced the planned closing of its Norwalk, Ohio truck cab assembly facility. This action comes as a result of Navistar's decision to insource the cab assembly operations performed at Norwalk into their existing assembly facility in Escobedo, Mexico. The closure of the Norwalk location will impact approximately 120 hourly and salaried associates at the facility. Norwalk is expected to continue assembly operations for Navistar products through April 2010.
Commercial Vehicle Group, Inc. Launches ComforTEK Flooring System
Commercial Vehicle Group, Inc. announced that it has launched its patent-pending ComforTEK high performance flooring system to the North American aftermarket.
Commercial Vehicle Group, Inc. Wins New MRAP Vehicle Military Business
Commercial Vehicle Group, Inc. announced that it has been selected by a Wisconsin-based military vehicle contractor to continue its participation in that company's latest Mine Resistant Ambush Protected (MRAP) series vehicle designed for service in Afghanistan. Commercial Vehicle Group's involvement in the program included development of the prototype vehicle. Moving into the production phase, the Company will supply the contractor with wire harness and cable assemblies, windscreen wiper systems, driver seat components and electrical panel assemblies. The Company will also continue to provide on-site engineering personnel who will work with contractor counterparts to support the assembly line. The Company plans to use five of its North American and one of its European manufacturing facilities to meet the accelerated production schedules required by the current demand contracts. While the total value of these contracts to CVG could vary depending on the contractor's decisions on additional content or manufacturing strategy, CVG estimates the program could represent $7 to $9 million in additional revenue for the initial phases of the program.
Commercial Vehicle Group, Inc. Awarded New Navistar Contract To Supply Interior Trim Products
Commercial Vehicle Group, Inc. announced that it has been awarded a new contract to supply Navistar Inc.'s Heavy Truck Product Group with interior trim products.
Commercial Vehicle Group, Inc. Selected as Development Partner for Nissan Diesel
Commercial Vehicle Group, Inc announced that it has been selected as the Development Source Partner for a new seat and suspension program with Nissan Diesel Motors, a subsidiary of Volvo AB. This joint initiative is a result of CVG's efforts to expand its global presence along with Volvo AB's global sourcing objectives. The new program includes seating and interior products and is currently scheduled for a late 2009 launch. The new seats, as well as other interior components such as bunks, are planned for use in multiple Nissan Diesel vehicles. These vehicles will be assembled in Japan for domestic use and are expected to be exported to certain global markets including South America, Asia, Australia and the United States. CVG will produce and supply the new model seats from its Shanghai, China facility.
Commercial Vehicle Group, Inc. Receives New Daimler Trucks Contract
Commercial Vehicle Group, Inc. announced that it has been awarded a new contract to provide several different CVG interior products for Daimler Trucks North America LLC, a Daimler company. Under the contract, CVG's Dublin, Virginia and Statesville, North Carolina facilities will supply headliners for use in Daimler's Freightliner Cascadia model and miscellaneous interior trim moldings for the Freightliner FLD model.
Commercial Vehicle Group, Inc. Receives New Volvo Trucks Contract
Commercial Vehicle Group, Inc.(CVG) announced that it has been awarded a new contract to provide multiple CVG interior products for Volvo Trucks North America. Under the contract, CVG will ship interior trim products such as headliners, back walls, sidewalls, bunks, tables, ladders and door panels for use on Volvo and Mack branded trucks. The products will be manufactured at CVG's Dublin, Virginia and Statesville, North Carolina facilities. The materials will be delivered to Volvo's New River Valley Assembly Plant (Dublin, Virginia) and to Mack's Macungie Assembly Plant (Macungie, Pennsylvania). CVG will also send aftermarket and replacement inventory to Volvo & Mack Service Outlets. A phased-in start up for the new business is scheduled to begin on March 31, 2009 and expected to be in full production by the end of the June.
Commercial Vehicle Group, Inc. To Close Vancouver Facility
Commercial Vehicle Group, Inc. announced that it will close its Vancouver, Washington manufacturing facility. The work currently performed at the Vancouver facility will be distributed to other CVG plants in North America. The Company's Vancouver operation produces interior soft trim and molded dash assemblies for the heavy truck industry as well as molded products for the gaming and material handling industries. The facility currently employees approximately 60 hourly and 11 salary employees who will be impacted by this action. At its peak, the facility employed over 200 associates.
Commercial Vehicle Group, Inc. Announces Salaried Workforce Reduction of 15%; Closure of Manufacturing, Warehousing And Assembly Facilities
Commercial Vehicle Group, Inc. announced a restructuring plan with pre-tax annual cost reduction initiatives of approximately $10.0 million. Included in the restructuring plan is a salaried workforce reduction of 15%, a Company-wide freeze on merit increases, the elimination of the Company's employer match to certain 401(k) and other retirement programs for fiscal 2009 and the closure of five of its smaller manufacturing, warehousing and assembly facilities. The facilities include its Kent, Washington assembly and sequencing facility; Statesville, North Carolina seat sequencing and assembly facility; Lake Oswego, Oregon manufacturing facility; Concord, North Carolina inventory and product warehouse; and its Seneffs, Belgium seat assembly and distribution facility. The Company estimates the cost of these actions to be approximately $2.5 million and expects to substantially complete the restructuring initiatives by April 2009. In addition, the Company announced that it will incur non-cash charges related to the impairment of its goodwill and certain intangible and other assets during the quarter ended December 31, 2008. Although the Company has not finalized its analysis, it estimates the total non-cash impairment charge will be equal to all or a substantial portion of all of its goodwill and intangible assets as of December 31, 2008. The Company will record the impact of the impairment charge in its 2008 financial statements to be included in its Form 10-K filing.
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