kscarbel2 Posted August 2 Share Posted August 2 August 1, 2024 Commercial Vehicle Group (CVG) today announced it reached an agreement to sell its Cab Structures business with operations in Kings Mountain, North Carolina to a Volvo Group company, effective July 31, 2024. The net proceeds of the transaction are expected to be $40 million, with closure expected in the second half of 2024. CVG expects the majority of proceeds to be used for debt paydown and other general corporate purposes. The Cab Structures business primarily serves the Class 8 truck market. This transaction continues a trend of heavy truck OEMs insourcing their cab structure production in recent years. James Ray, CVG President and Chief Executive Officer, said, “The strategic sale of our Cab Structures business marks another milestone on our journey to evolve our business towards higher-growth products and markets, in line with our ongoing strategic transformation plan, while simultaneously generating shareholder value. The sale of our Cab Structures business reduces our exposure to the cyclical Class 8 market, lowers our customer concentration, removes complexity from our business, and improves our return profile.” About 230 CVG employees are expected to become employees of Volvo, as part of the transaction. “We are very happy to see this plant in good hands,” said Mr. Ray. “Volvo brings proven operating experience. Kings Mountain employees will benefit from continuity of the plant’s operations and will have the unique opportunity to work for the OEM. This transaction also lowers our future capital investment needs and provides the opportunity to invest in high-growth opportunities moving forward. We will continue to closely review additional opportunities for value creation.” CVG expects to update its full-year 2024 outlook to reflect the impact of the Cab Structures business divestiture in its second quarter 2024 earnings release expected to be released on August 5, 2024. Quote Link to comment https://www.bigmacktrucks.com/topic/74411-commercial-vehicle-group-sells-mack-cab-business-to-volvo/ Share on other sites More sharing options...
james j neiweem Posted August 10 Share Posted August 10 Is this the end of the current Mack cab? Was cvg making cabs for Volvo as well as Mack. Quote Link to comment https://www.bigmacktrucks.com/topic/74411-commercial-vehicle-group-sells-mack-cab-business-to-volvo/#findComment-556804 Share on other sites More sharing options...
james j neiweem Posted August 16 Share Posted August 16 Looks like the MD is getting the +4 cab. They must have had to use up a bunch of -4 cabs at the MD's introduction. Quote Link to comment https://www.bigmacktrucks.com/topic/74411-commercial-vehicle-group-sells-mack-cab-business-to-volvo/#findComment-557101 Share on other sites More sharing options...
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