Commercial Vehicle Group Enters Agreement With Daimler Trucks

NEW ALBANY, Ohio, Sept. 7 /PRNewswire/ -- Commercial Vehicle Group, Inc. (Nasdaq: CVGI) announced today that it has entered into an agreement with Daimler Trucks North America LLC, a Daimler company (DTNA), through 2014 to provide products for DTNA's manufacturing facilities in Saltillo and Santiago, Mexico and three facilities in the United States.  In accordance with the agreement, CVG will open a new facility near Saltillo, Mexico.

As part of the agreement, CVG will provide products to DTNA which include air-suspension and static seats, flooring systems, thermoformed plastic, injection-molded and soft trim interior components.  The CVG products will be used on several DTNA models including the Cascadia, Columbia, Western Star and M2 platform-based vehicles.

Mervin Dunn, President and Chief Executive Officer of CVG, stated, "Daimler has been a valued, long-standing CVG customer and partner and we are very pleased to announce this agreement with Daimler Trucks North America.  The fact that DTNA has chosen CVG to continue to work with them on the production of these platforms is a testament to CVG's capabilities and financial strength."

The Company expects the Mexico facility to be in operation in mid 2011 and estimates the initial capital investment requirements to be in the range of $4.0 to $5.0 million with startup expenses (net of estimated savings and incentives) of approximately $1.0 to $2.0 million.  CVG anticipates utilizing the facility to supply Daimler products along with other customers in the Mexico region as well as utilizing capacity for new business initiatives.  Upon completion of the facility, the Company estimates that incremental new business wins and the reduced cost basis of the Mexican operation will result in positive operating income results on an annual basis.

"This agreement also represents an opportunity for us to work with existing and new customers on new business opportunities in a low-cost production region and supports our strategy to diversify our geographic footprint.  We remain focused on our existing manufacturing footprint and overall cost structure as we continue to align our operations with the needs of our customers," added Mr. Dunn.

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, electronic 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 is headquartered in New Albany, OH with operations throughout North America, Europe and Asia. Information about the Company and its products is available on the internet at www.cvgrp.com.

About Daimler Trucks North America

Daimler Trucks North America LLC, headquartered in Portland, OR is the leading medium- and heavy-duty truck manufacturer in North America. Daimler Trucks North America produces and markets Class 4 - 8 vehicles and is a Daimler company, the world's leading commercial vehicle manufacturer.

Forward-Looking Statements

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 capital expenses, startup costs, incremental new business wins and cost basis relating to its Mexican operations and the related impact on operating income 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 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 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; and (viii) 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.