CVG Announces New Structure to Support Market-Focused Strategy

Rhea-AI Summary

Commercial Vehicle Group (CVGI) has announced a major organizational restructuring effective January 1, 2025. The company will reorganize into three operating divisions: Global Electrical Systems, Global Seating, and Trim Systems and Components. The Aftermarket & Accessories business unit will be integrated into these segments, with its portfolio distributed accordingly.

Key leadership appointments include Russell Ketteringham as President of Global Seating, Donald Fishel as President of Trim Systems and Components, and Peter Lugo continuing to lead Electrical Systems. This restructuring follows CVG's 2024 initiatives to streamline operations and reduce costs. The company expects the new structure to enhance market focus and operational efficiency while reducing corporate and administrative costs.

CVG will begin reporting under this new segment structure from Q1 2025, with historical quarterly segment results to be provided.

Positive

• Streamlined organizational structure reducing administrative costs
• Market-focused reorganization potentially improving operational efficiency
• Clear leadership structure with dedicated presidents for each division

Negative

• Additional transition costs may impact short-term financial performance
• Organizational disruption during restructuring implementation

NEW ALBANY, Ohio, Jan. 07, 2025 (GLOBE NEWSWIRE) -- Commercial Vehicle Group (the “Company” or “CVG”) (NASDAQ: CVGI), a diversified industrial products and services company, today announced that its Board of Directors has authorized the Company to implement a new organizational structure designed to enhance alignment with its customers and end markets, effective January 1, 2025.

Under this new structure, CVG will reorganize its vertical business units into the following three operating divisions and reporting segments.

• Global Electrical Systems
• Global Seating
• Trim Systems and Components
  

As part of this realignment, the Company’s Aftermarket & Accessories business unit will be absorbed in these three segments. Its seating and electrical portfolio will transition to Global Seating and Global Electrical Systems, respectively. Its wiper systems will become part of the newly formed Trim Systems and Components business unit in addition to the trim and components businesses from the prior Vehicle Solutions segment.

Russell Ketteringham will lead the seating business as President, Global Seating, transitioning from President, Global Vehicle Solutions. Donald Fishel will lead the new trim systems and components business as President, Trim Systems and Components in addition to his Business Development responsibilities. Peter Lugo will continue to lead the Electrical Systems segment.

In 2024, CVG streamlined its operating model and lowered its cost profile as part of its strategic portfolio rationalization. CVG expects this new structure to enhance clarity and focus, with each business unit positioned to deliver on its specific strategic and operational objectives while executing initiatives to advance key priorities. The realignment better positions CVG for future growth, while lowering corporate and administrative costs to align with the company’s current revenue profile.

“This new organizational structure is an important step in our transformation to become a more agile company that puts our customers and our markets first,” said James Ray, President, and CEO of CVG. “We anticipate that our new structure will accelerate our operational momentum and drive higher growth through a product-focused, customer-centric enterprise strategy.”

CVG expects to begin reporting results under the new reportable segment structure beginning with the first quarter 2025 results, and the Company expects to provide historical quarterly segment results under the new structure at that time as well.

About CVG

At CVG, we deliver real solutions to complex design, engineering and manufacturing problems while creating positive change for our customers, industries, and communities we serve. Information about CVG and its products is available at www.cvgrp.com.

Investor Relations Contact:
Ross Collins or Stephen Poe
Alpha IR Group
CVGI@alpha-ir.com

Media Contact:
Patrick Woolford
Director, Communications
Patrick.Woolford@cvgrp.com

FAQ

What are the three new operating divisions of CVGI after the 2025 restructuring?

The three new operating divisions are Global Electrical Systems, Global Seating, and Trim Systems and Components.

When will CVGI begin reporting under its new segment structure?

CVGI will begin reporting under the new segment structure starting with the first quarter 2025 results.

How will CVGI's Aftermarket & Accessories business be integrated into the new structure?

The Aftermarket & Accessories business will be absorbed into the three new segments, with seating and electrical portfolios going to Global Seating and Global Electrical Systems respectively, and wiper systems moving to Trim Systems and Components.

Who are the presidents of CVGI's new operating divisions?

Russell Ketteringham will lead Global Seating, Donald Fishel will lead Trim Systems and Components, and Peter Lugo will continue leading Electrical Systems.

What is the main goal of CVGI's 2025 restructuring?

The restructuring aims to enhance alignment with customers and end markets, improve operational efficiency, and reduce corporate and administrative costs while positioning the company for future growth.