Commercial Vehicle Group Enacts Cost-Reduction Initiatives
Feb 11, 2009 2:45 PM
Commercial Vehicle Group, Inc. announced a restructuring plan with pre-tax annual cost reduction initiatives of approximately $10 million, including a salaried workforce reduction of 15 percent, a company-wide freeze on merit increases, the elimination of the company's employer match to certain 401(k) and other retirement programs for 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.
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