Commercial Vehicle Group Awarded New Volvo Trucks Contract
Apr 1, 2009 2:01 PM
Commercial Vehicle Group, Inc. (Nasdaq: CVGI) 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 startup for the new business is scheduled to begin on March 31 and expected to be in full production by the end of the June.
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 million.
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