Business
Commercial Vehicle Group Announces Actions In Response To COVID-19 Pandemic
NEW ALBANY, Ohio, April 13, 2020 /PRNewswire/ -- Commercial Vehicle Group, Inc. (the "Company" or "CVG") (NASDAQ: CVGI), a leading supplier of
About this update from Commercial Vehicle Group, Inc.
[{"type":"text","content":"NEW ALBANY, Ohio, April 13, 2020 /PRNewswire/ -- Commercial Vehicle Group, Inc. (the \"Company\" or \"CVG\") (NASDAQ: CVGI), a leading supplier of fully-integrated system solutions for the global commercial vehicle market, announced additional actions to adjust and synchronize the Company's priorities, overall cost structure including salaried and hourly staffing, and working capital investments in order to optimize outcomes during the global COVID-19 pandemic. \n\n \n \n \n \n \n \n\n \n\"During these challenging conditions, we have taken decisive actions to align both our priorities and cost structure to the current lower demand environment,\" said Harold Bevis, President and Chief Executive Officer of CVG. \"Since the initial impact on our business was felt as COVID-19 spread in China, we have been watching the situation closely. Our operations in China have returned to near pre-disruption levels; however, we have yet to reach the apex of the pandemic in North America and Europe. To date, we have moved quickly and broadly, and are working closely with our customers to prioritize key projects and short-term production decisions. We have retained staffing with lean structures for essential operations, and are managing our working capital investments aggressively. We believe these actions will better enable CVG to navigate the current economic turmoil, while also ensuring we remain focused on the needs of our many stakeholders – employees, customers, and investors.\"\nAligning Cost Structure to Business Priorities and Preserving Liquidity\nCVG has aggressively implemented a series of temporary cost reduction measures to further align its cost structure and business practices to the current business environment, preserve liquidity, and protect its workforce. These temporary actions include:\n50% reduction of the compensation for Chief Executive Officer, Harold Bevis 40% reduction of the compensation for the remaining executive leadership team 20% reduction of base wages for all global salaried personnel through a combination of furloughs and reductions, in accordance with local laws, regulations, and labor agreements 20% reduction of annual cash retainer compensation for CVG's Board of Directors Select reduction in workforce and furloughing of production employees Elimination of discretionary expenses and non-essential capital ex...