NEW ALBANY, Ohio, March 8, 2011 /PRNewswire/ -- Commercial Vehicle Group, Inc. (Nasdaq: CVGI) announced today that it has been selected by Beiqi Foton Motor Co., Ltd. ("Foton"), a leading Chinese heavy truck manufacturer, as one of two key seat suppliers for its new H4 heavy truck platform. Under this program, CVG will provide its new GSX3000 driver seat for use in Foton's vehicles. CVG is also working to develop a unique passenger seat to further support Foton's new H4 program.
The Company expects to begin production in the third quarter of 2011. The program is expected to ramp up production over a four-year period with anticipated peak annual volumes of more than 150 thousand units. CVG estimates that, at full production, it will provide approximately fifty percent of Foton's H4 truck seats.
In support of the H4 program, CVG is establishing a new production facility in Beijing, China and will supply product to Foton's new manufacturing plant in Beijing on a just-in-time basis. In addition, this facility will be utilized for other current CVG customers in the region. The Company estimates annualized revenues from the new program to be approximately $11.0 million in 2012, growing to more than $30.0 million at full production levels for the H4 program.
"This new business award with Foton is an exciting opportunity for CVG and our China operation," said W. Gordon Boyd, President of Seating Systems for Commercial Vehicle Group. "Expanding our China operations into the Beijing region with a quality customer such as Foton is a positive step towards our continued growth and success in the Chinese market," added Boyd.
Mervin Dunn, Commercial Vehicle Group's President and Chief Executive Officer said, "This new business opportunity with Foton represents yet another milestone in our strategy to expand our international footprint and further diversify our company on a global scale. We are very pleased to have been selected by Foton for this new program and we look forward to continuing our efforts in China and other regions of the world."
About Commercial Vehicle Group, Inc.
Commercial Vehicle Group is a leading supplier of fully integrated system solutions for the global commercial vehicle market, including the heavy-duty truck market, the construction and agriculture markets and the specialty and military transportation markets. The Company's products include static and suspension seat systems, electrical wire harness assemblies, controls and switches, structures and components, interior trim systems (including instrument panels, door panels, headliners, cabinetry and floor systems), mirrors and wiper systems specifically designed for applications in commercial vehicles. The Company headquartered in New Albany, OH has operations throughout North America, Europe and Asia. Information about the Company and its products is available on the internet at www.cvgrp.com.
About Beiqi Foton Motor Co., Ltd.
Beiqi Foton Motor Co., Ltd. was founded in 1996 and is headquartered in Changping District, Beijing, China. Foton has business units located throughout China with international R&D branches in Japan, Germany, Taiwan, and the Philippines. Foton manufactures light and heavy-duty trucks, agricultural tractors, and various other machinery.
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 product development initiatives, production ramp-up dates and volumes, estimated revenues or other financial information. These statements are based on certain assumptions that the Company has made in light of its experience in the industry 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 services; (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 heavy-duty truck market; (v) the impact of changes in governmental regulations on the Company's customers or on its business; (vi) the loss of business from a major customer or the discontinuation of particular commercial vehicle platforms; (vii) the Company's ability to obtain future financing due to changes in the lending markets or its financial position; (viii) the Company's failure to complete or successfully integrate additional strategic acquisitions; and (ix) 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, 2009. 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.
SOURCE Commercial Vehicle Group, Inc.