Commercial Vehicle Group announced restructuring and cost reduction actions that are expected to lower operating costs by $8 to $12 million annually when fully implemented. These actions will begin before the end of the year and reflect improvements to manufacturing footprint and capacity utilization, and to selling, general and administrative (SG&A) costs, including an executive realignment.

Pre-tax costs associated with these actions, including associated capital investment, are expected to be $12 to $19 million, the majority of which is employee-related separation costs and other costs associated with the transfer of production and subsequent closure of facilities.

President and chief executive officer, Pat Miller said, “These restructuring and cost reduction actions reflect, in part, the challenging conditions in our global construction and agriculture end markets, but are also the result of the ongoing evaluation of our manufacturing footprint and capacity utilization. We are committed to a renewed focus on cost management and margin protection in the near term, as we work to enhance our competitive position, top line growth, and earnings over the longer term.”

“We know the impact of these decisions will be difficult for our employees and the communities affected by closures. We do not make these decisions lightly,” added Miller.

New Albany, OH-based Commercial Vehicle Group is a supplier of a full range of cab related products and systems for the global commercial vehicle market, including the medium-and heavy-duty truck market, the medium-and heavy-duty construction vehicle market, and the military, bus, agriculture, specialty transportation, mining, industrial equipment and off-road recreational markets.