Commercial Vehicle Group Announces Plant Consolidation

Commercial Vehicle Group Announces Plant Consolidation

The company announced the permanent consolidation of its manufacturing and distribution facility in Piedmont, Alabama.

Commercial Vehicle Group Inc., supplier of seating systems, electro-mechanical assemblies, engineered material products and warehouse automation subsystems, has announced the permanent consolidation of its manufacturing and distribution facility in Piedmont, Alabama, in connection with the company’s cost-reduction plan previously announced on May 18.  

The Piedmont facility primarily serves the commercial vehicle aftermarket and employs approximately 49 employees. The work performed at the Piedmont facility will be transferred to the company’s manufacturing and distribution facility in Vonore, Tennessee, following the closure, which is expected to be substantially completed in the fourth quarter of 2020. Vonore will become the new headquarters for CVG’s Commercial Vehicle Aftermarket business.

“Plant closure decisions are always difficult. We believe consolidating the aftermarket manufacturing and distribution operations into one central location will strengthen our capabilities and improve our competitiveness through reduced lead times, improved on-time delivery, and further optimization of our cost structure,” said Harold Bevis, president and CEO of Commercial Vehicle Group. “We are mindful of the impact this decision will have on our Piedmont employees and the surrounding community and we thank them for their dedication and years of service. We intend to maintain our existing customer service team to ensure customer continuity and a seamless transition for our valued customers. The aftermarket business is an important part of CVG, and we believe this strategic move will further enable us to grow the business and deliver value to all our stakeholders.”

The company will provide assistance to affected employees including retention benefits and opportunities to transfer to other CVG facilities.

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