NEW ALBANY, Ohio, March 31 /PRNewswire-FirstCall/ -- Commercial Vehicle Group, Inc. announced today 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 nation-wide. 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 2009.
Mervin Dunn, President and Chief Executive Officer of Commercial Vehicle Group stated, "We are very pleased to have earned this business with Volvo as an established and valued partner. The fact that we achieved this business under a competitive bidding process is a testament to the quality of our product and the capability of our workforce. We are also pleased that this new business includes multiple CVG products for sleeper cabs as well as day cabs which helps us diversify and increase our content per vehicle."
Based on current North American Class 8 Truck build rates, CVG anticipates this contract will provide an annualized revenue increase of approximately $8.0 million.
About Commercial Vehicle Group, Inc.
Commercial Vehicle Group is a leading supplier of fully integrated system solutions for the global commercial vehicle market, including the heavy-duty truck market, the construction and agriculture market and the specialty and military transportation markets. The Company's products include suspension seat systems, interior trim systems, such as instrument and door panels, headliners, cabinetry, molded products and floor systems, cab structures and components, mirrors, wiper systems, electronic wiring harness assemblies and controls and switches specifically designed for applications in commercial vehicle cabs. The Company is headquartered in New Albany, OH with operations throughout North America, Europe and Asia. 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," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. In particular, this press release may contain forward-looking statements about Company estimates for future periods with respect to annualized increase in revenues or other financial information. These statements are based on certain assumptions that the Company has made in light its experience in the industry 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) general economic or business conditions affecting the markets in which the Company serves; (ii) increased competition in the heavy-duty truck market; (iii) the impact of changes in governmental regulations on the Company's customers or on its business; (iv) the loss of business from a major customer or the discontinuation of particular commercial vehicle platforms; (v) the Company's ability to execute cost reductions and restructuring initiatives; and (vi) various other risks as outlined under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2008. 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.