Commercial Vehicle Group Inc., a leading supplier of fully integrated system solutions for the global commercial vehicle market, announces the Ccompany's direction, pending negotiations with the hourly employees' union representative, to consolidate its North American seat production into two North American facilities and cease seat production in its Piedmont, AL, facility.
The Piedmont facility has historically manufactured commercial seats for the OEM, and Aftermarket & Service markets. The company will continue to maintain a presence in Piedmont for its Aftermarket & Service distribution channel following the transfer of seat production. Approximately 160 employees will be impacted by this restructuring, which is expected to be completed in the third quarter of 2016. Positions that support the Aftermarket & Service sector distribution will remain in Piedmont.
Greg Boese, Senior Vice President & Managing Director - Global Truck & Bus Seats, says, "Restructuring changes and layoffs are always difficult because of the impact on the community, our employees, and their families. This plan is necessary, however, to rationalize our manufacturing footprint capacity and reduce fixed costs to remain competitive as customer needs and marketplace trends shift."
The company will be meeting with the UAW union representing hourly employees to negotiate over its decision and to discuss transitional support. The company has also informed affected salaried employees. The company plans to petition for assistance for affected employees under the Department of Labor Trade Adjustment Assistance Program (TAA).
The company anticipates restructuring charges of approximately $3-$4 million and the annual operating savings, once plans are fully implemented, represents a portion of the broader $8-$12 million restructuring guidance announced late last year. Boese states, "We value the contributions of our Piedmont employees but intend to pursue this action to remain competitive in the marketplace. We look forward to remaining an active employer in the Piedmont community in support of our critical Aftermarket & Service distribution channel."