NEW ALBANY, Ohio, March 12, 2019 /PRNewswire/ -- Commercial Vehicle Group, Inc. (the "Company" or "CVG") (NASDAQ: CVGI) today announced new customer and product wins in the attractive China market in its Global Seating segment.
CVG was awarded the next generation heavy duty truck platform utilizing its World Platform ("WP") seat solution for Dayun, a leading heavy- and medium-duty truck manufacturer in China. CVG Shanghai expects delivery to Dayun to begin in the second half of 2019 ramping up production into 2020. In addition, the Company announced that it will be supplying long-term customer, Foton-Daimler, a newly engineered heat and ventilation seat system for their new high-end truck platform. CVG has been a long term supplier to Foton-Daimler, supplying them truck seats on other heavy-duty truck platforms. CVG believes these opportunities combined will provide approximately $7 million to $10 million in annual revenue once fully ramped.
Patrick Miller, President and Chief Executive Officer, stated, "Our increasing traction in the growing Asia Pacific region is a testament to our team's dedication and execution on our strategic priorities and demonstrates our product innovation and quality. Our collaboration with Dayun further positions CVG Shanghai as a supplier of choice based on our high-quality product portfolio and in-region design and development expertise. With our new supply agreement with Foton, we are introducing our integrated heat and ventilation solution to the China market for the first time. There is a growing interest in truck seat comfort and functionality in this region, and we are well positioned to help customers upgrade to higher-quality seats with greater functionality and sustainable performance."
The WP seat features an integrated belt design with a full range of features and adjustments including memory settings and heat/vent. The seat meets European safety requirements for both medium- and heavy-duty trucks and buses. As heavy- and medium-duty manufacturers in China have moved to benchmarking popular European platforms, the highest-end truck market in the world, those same features are increasingly being integrated into offerings in China. CVG works closely with the local engineers of its OEM customers to develop the right solution that meets specifications and is cost appropriate. The WP product was launched in China in July 2014. Although most units are produced for leading OEMs in-country, the product is exported to Europe and Australia.
About Commercial Vehicle Group, Inc.
Commercial Vehicle Group, Inc. (through its subsidiaries) is a leading supplier of electrical wire harnesses, seating systems, and a full range of other cab related products for the global commercial vehicle markets, including the medium- and heavy-duty truck, medium-and heavy-construction vehicle, military, bus, agriculture, specialty transportation, mining, industrial equipment and off-road recreational markets. Information about the Company and its products is available on the internet at www.cvgrp.com.
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 expectations for future periods with respect to its plans to improve financial results and enhance the Company, the future of the Company's end markets including Class 8 and Class 5-7 North America truck build rates and performance of the global construction equipment business, expected cost savings, the Company's initiatives to address customer needs, organic growth, the Company's plans to focus on certain segments and markets and the Company's financial position or other financial information. These statements are based on certain assumptions that the Company has made in light of its experience 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) the Company's ability to develop or successfully introduce new products; (iii) risks associated with conducting business in foreign countries and currencies; (iv) increased competition in the medium- and heavy-duty truck markets, construction, agriculture, aftermarket, military, bus and other markets; (v) the Company's failure to complete or successfully integrate strategic acquisitions; (vi) the Company's ability to recognize synergies from the reorganization of the segments; (vii) the Company's failure to successfully manage any divestitures; (viii) the impact of changes in governmental regulations on the Company's customers or on its business; (ix) the loss of business from a major customer, a collection of smaller customers or the discontinuation of particular commercial vehicle platforms; (x) the Company's ability to obtain future financing due to changes in the lending markets or its financial position; (xi) the Company's ability to comply with the financial covenants in its debt facilities; (xii) fluctuation in interest rates relating to the Company's debt facilities; (xiii) the Company's ability to realize the benefits of its cost reduction and strategic initiatives; (xiv) a material weakness in our internal control over financial reporting which could, if not remediated, result in material misstatements in our financial statements; (xv) volatility and cyclicality in the commercial vehicle market adversely affecting us; (xvi) the geographic profile of our taxable income and changes in valuation of our deferred tax assets and liabilities impacting our effective tax rate; (xvii) changes to domestic manufacturing initiatives; and (xviii) implementation of tax or other changes, by the United States or other international jurisdictions, related to products manufactured in one or more jurisdictions where the Company does business; and (xix) various other risks as outlined under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for fiscal year ending December 31, 2017. 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.
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SOURCE Commercial Vehicle Group, Inc.
Tim Trenary, Commercial Vehicle Group, Inc., (614) 289-0418