Commercial Vehicle Group to Close Seattle, WA, Operations

Commercial Vehicle Group has announced it will close its Seattle,WA, manufacturing facility and transfer operations by the end of December in a move designed to improve its customer service and strengthen the company's long-term competitive position. CVG's Seattle operation produces interior trim products for heavy-duty trucks and marine products for OEMs. The work currently performed at the Seattle facility will be distributed to existing CVG plants in the United States.

NEW ALBANY, OH — Commercial Vehicle Group has announced it will close its Seattle,WA, manufacturing facility and transfer operations by the end of December in a move designed to improve its customer service and strengthen the company’s long-term competitive position.

CVG’s Seattle operation produces interior trim products for heavy-duty trucks and marine products for OEMs. The work currently performed at the Seattle facility will be distributed to existing CVG plants in the United States.

According to the company, the decision to close the Seattle facility and redistribute the work was the result of a long-term analysis of changing market requirements, including the consolidation of product lines and closer proximity to customer operations. Approximately 115 jobs will be eliminated as a result of the plant closure.

"The decision to close the Seattle operation was not easy. This action was taken after serious consideration of our alternatives and the long-term implications for our entire company," said Jerry Armstrong, president of CVG Global Truck. "We have contacted the employees as well as government and community leaders to explain the situation and why this step was necessary. We regret the impact which this action will have on our Seattle employees and their families and we will work hard to assist them during this difficult time and transition in their lives."

The company estimates it will record charges incurred in connection with the restructuring of approximately $1.7 million during the quarter ending June 30, including approximately $0.4 million of non-cash expense related to the write-down of certain assets; and approximately $1.2 million of costs incurred and recorded during the six month period ending

Dec. 31. Cash expenditures incurred subsequent to the quarter ending Dec. 31 will approximate $0.3 million in facility exit and other contractual costs.

The company anticipates a 2008 pre-tax annual savings of approximately $1.9 million from the closure.

For more information about CVG, visit: http://www.cvgrp.com.