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Commercial Vehicle Group unveils manufacturing consolidation

ABR Staff Writer Published 03 May 2016

Commercial Vehicle Group announced, that due to pending negotiations with the hourly employees' union representative, it has decided to consolidate its North American seat production into two North American facilities and stop seat production at its Alabama facility.

The Piedmont facility has historically manufactured commercial seats for the OEM, and Aftermarket & Service markets.

The Company will continue to maintain a presence in Piedmont for our Aftermarket & Service distribution channel following the transfer of seat production.

Approximately one hundred sixty employees will be impacted by this restructuring, which is expected to be completed in the third quarter of 2016. Positions that support the Aftermarket and Service sector distribution will remain in Piedmont.

Commercial Vehicle Group Global Truck & Bus Seats senior vice president & managing director Greg Boese said, "Restructuring changes and layoffs are always difficult because of the impact on the community, our employees, and their families.

"This plan is necessary, however, to rationalize our manufacturing footprint capacity and reduce fixed costs to remain competitive as customer needs and marketplace trends shift."

The Company will be meeting with the UAW union representing hourly employees to negotiate over its decision and to discuss transitional support.

The Company has also informed affected salaried employees. The Company plans to petition for assistance for affected employees under the Department of Labor Trade Adjustment Assistance Program (TAA).

The Company anticipates restructuring charges of approximately $3 - 4 million and the annual operating savings, once plans are fully implemented, represents a portion of the broader $8 - $12 million restructuring guidance announced late last year.

Boese said: "We value the contributions of our Piedmont employees but intend to pursue this action to remain competitive in the marketplace. We look forward to remaining an active employer in the Piedmont community in support of our critical Aftermarket and Service distribution channel."

Source: Company Press Release