Commercial Vehicle Group Wins New Skoda Business

NEW ALBANY, Ohio, Nov. 2, 2010 /PRNewswire/ -- Commercial Vehicle Group, Inc. (Nasdaq: CVGI), a leading supplier of fully integrated system solutions for the global commercial vehicle market, announced today that it has entered into a definitive agreement to provide Skoda Auto a.s. with auxiliary wire harnesses.  Skoda Auto is located in Mlada Boleslav, Czech Republic, and a member of the Volkswagen Group, the largest car manufacturer in Europe.  

The new contract calls for CVG to provide Skoda Auto with wire harnesses to be used in car doors, seats, bumpers and parking sensors on two of Skoda's future car lines.  CVG will produce the wire harnesses at its facilities located in Liberec, Czech Republic and Kamyanets-Podilsky, Ukraine.

Currently, CVG is delivering similar products for two other Skoda car lines, the Yeti, an SUV, and the Superb B6.  In addition to the manufacture of parts, CVG will also supply Skoda with design activities, development and engineering services, drawings, prototyping, production samples and customer service assistance.  

Production of the new parts is set to begin in 2012.  CVG currently estimates the annualized revenue resulting from this new business award will be in the range of 10 to 12 million Euros.  

Milan Hejral, Executive Director of PEKM Kabeltechnik, a division of CVG stated, "We have enjoyed a long-term, successful relationship with Skoda.  In fact, Skoda is currently CVG's longest-term customer in Liberec.  We began delivering wire harnesses for Skoda cars in 1992.  Additionally, our facility has been awarded five quality Q-Awards from Skoda and one Q-Award from VW.  We are very pleased they awarded this new business to us, and that Skoda has chosen to continue its long-term relationship with us through this new award."

Kevin Frailey, President and General Manager of CVG's Electrical Systems Division said, "Importantly, this new business award strengthens our position with Skoda as a customer and in the European market overall.  CVG Liberec's close proximity to Skoda, backed by its sister location in low-cost Ukraine, allows us to offer an excellent value at a competitive price.  This new contract confirms the soundness of our corporate strategy, and our Company's ability, to diversify our geographic footprint, customer base and product offerings."    

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.

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 revenues from new business awards 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.