COMPANY OVERVIEW
−Removed: At Commercial Vehicle Group, Inc.
−Removed: and its subsidiaries, we deliver real solutions to complex design, engineering and manufacturing problems while creating positive change for our customers, industries, and communities we serve.
+Added: Commercial Vehicle Group, Inc.
+Added: and its subsidiaries, is a global provider of systems, assemblies and components to the global commercial vehicle market, the electric vehicle market, and the industrial automation markets.
+Added: We deliver real solutions to complex design, engineering and manufacturing problems while creating positive change for our customers, industries, and communities we serve.
References herein to the "Company", "CVG", "we", "our", or "us" refer to Commercial Vehicle Group, Inc.
and its subsidiaries.
−Removed: We have manufacturing operations in the United States, Mexico, China, United Kingdom, Belgium, Czech Republic, Ukraine, Thailand, India and Australia.
+Added: We have manufacturing operations in the United States, Mexico, China, United Kingdom, Czech Republic, Ukraine, Morocco, Thailand, India and Australia.
Our products are primarily sold in North America, Europe, and the Asia-Pacific region.
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Refer to Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations.
−Removed: Contemporaneously with the filing of this Form 10-K, we updated our reportable segments to rename Warehouse Automation to Industrial Automation.
−Removed: We continue to report our results in four segments - Vehicle Solutions, Electrical Systems, Aftermarket & Accessories and Industrial Automation.
−Removed: The segment name change did not result in any change to the composition of the Company's segments and therefore did not result in any change to historical results.
−Removed: Our segments offer various products which are sold into many end markets such as internal combustion commercial vehicles, electric vehicles, construction equipment, power sports, industrial automation and military.
+Added: Our segments offer various products which are sold into many end user markets such as internal combustion commercial vehicles, electric vehicles, construction equipment, power sports, industrial automation and military.
Certain of our facilities manufacture and sell products through multiple business segments.
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This segment includes a portion of the company’s activities in the electric vehicle market.
−Removed: • Plastic components ("Trim") primarily for the North America commercial vehicle market and power sports markets;
+Added: • Plastic & Trim components primarily for the North America commercial vehicle market and power sports markets;
and Cab structures for the North American medium-duty/heavy-duty ("MD/HD") truck market.
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• Cable and harness assemblies for both high and low voltage applications, control boxes, dashboard assemblies and design and engineering for these applications.
−Removed: • The end markets for these products are construction, agricultural, industrial, automotive (both internal combustion and electric vehicles), truck, mining, rail and the military/ defense industries in North America, Europe and Asia-Pacific.
+Added: • The end markets for these products are construction, agricultural, industrial, automotive (both internal combustion and electric vehicles), truck, mining, rail, marine, power generation and the military/ defense industries in North America, Europe and Asia-Pacific.
The Aftermarket & Accessories segment designs, manufactures and sells the following products:
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We offer thermoformed products, injection molded products, reaction injection molded products (RIM), and decorated / hydrographic finished products.
−Removed: We also assemble components and fabrics to these formed plastic parts and deliver complete subassemblies in bulk and sequenced VIN specific.
+Added: We also assemble components and fabrics to these formed plastic parts and deliver complete subassemblies in bulk and in sequence.
Our principal products in this category include:
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We offer customers a wide variety of cost-effective finishes in paint, ultra violet, hard coating and customized industrial hydrographic films (simulated appearance of wood grain, carbon fiber, brushed metal, marbles, camouflage and custom patterns), and other interior and exterior finishes.
+Added: Cab Interiors.
+Added: We design, manufacture and provide a variety of interior design products including armrests, grab handles, storage systems, floor coverings, floor mats, sleeper bunks, headliners, wall panels, and privacy curtains that can be part of the overall cab structure or standalone assemblies depending on the customer application.
Our plastic products are sold under several brand names including FinishTEK ™ and AdvancTEK ™ .
−Removed: Cab Structures and Interior Parts .
−Removed: We design, engineer and produce complete cab structures and interior design components for commercial vehicles.
−Removed: Our principal products in this category include:
+Added: CVG sold its FinishTEK business effective January 31, 2024.
Cab Structures .
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Our cab structures, which are manufactured from both steel and aluminum, are delivered fully assembled and primed for paint.
−Removed: Cab Interiors.
−Removed: We design, manufacture and provide a variety of interior design products including armrests, grab handles, storage systems, floor coverings, floor mats, sleeper bunks, headliners, wall panels, and privacy curtains that can be part of the overall cab structure or standalone assemblies depending on the customer application.
ELECTRICAL SYSTEMS SEGMENT OVERVIEW
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Our production capabilities include low and high volume serial production with low and high volume circuitry, RIM (reaction injection molding) and specialized testing.
−Removed: Cable Harness Assemblies .
−Removed: Our primary product offerings include engineering design for customized cable assemblies, control boxes, fuse boxes, dashboard assemblies in multiple sizes, complexity, and applications.
Our engineering and production capabilities include virtual wiring boards, automatic plug insertion stations, system architecture and schematic development and prototyping.
−Removed: Our electrical systems segment products are sold into the construction, agriculture, industrial, e-commerce and electric vehicles, traditional automotive, mining, rail and military end markets.
+Added: Our electrical systems segment products are sold into the construction, agriculture, industrial, e-commerce and electric vehicles, traditional automotive, mining, rail, military end markets, marine, power generation and the military/defense industries in North America, Europe and Asia-Pacific.
AFTERMARKET & ACCESSORIES SEGMENT OVERVIEW
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OUR CONSOLIDATED OPERATIONS
−Removed: As a diverse global company, we are affected by supply chain disruptions, instability in certain regions, commodity prices, foreign currency volatility and policies regarding trade and imports.
−Removed: While we continue to operate, consistent with applicable government guidelines, we are experiencing, and may continue to experience, production slowdowns and/or shutdowns at our manufacturing facilities in North America, Europe and Asia Pacific as a result of government orders, our inability to obtain component parts from suppliers and/or unpredictable customer demand.
−Removed: In addition, many of our suppliers and customers are also experiencing, and may continue to experience, production slowdowns and/or shutdowns, which may further impact our business, sales and results of operation.
Primary Industries Served
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Industrial Automation Market.
−Removed: Shifting retailer behavior and consumer expectations are creating a significant need for incremental automation within warehouses.
+Added: Shifting retailer behavior and consumer expectations are creating a significant need for incremental automation within warehouses and other industrial facilities.
Given consumer demands for next-day (and same-day) delivery, there has been a surge in demand for “last mile” urban fulfillment centers, which are typically supported by very large distribution centers located in the outer ring of a city.
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Due to the volatility in pricing, we use methods such as market index pricing and competitive bidding to assist in reducing our overall cost.
−Removed: The impact of the COVID-19 pandemic and the global economy on raw material sourcing has affected the supply and prices of certain of our products.
We strive to align our customer pricing and material costs to minimize the impact of price fluctuations.
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Intellectual Property
−Removed: Our major brands include CVG ™ , Sprague Devices ® , Moto Mirror ® , RoadWatch ® , KAB Seating ™ , National Seating ™ , Bostrom Seating ® , Stratos ™ , FinishTEK ™ and AdvancTEK ™ .
+Added: Our major brands include CVG ™ , Sprague Devices ® , Moto Mirror ® , RoadWatch ® , KAB Seating ™ , National Seating ™ , Bostrom Seating ® , Stratos ™ , and AdvancTEK ™ .
We believe that our brands are valuable but that our business is not dependent on any one brand.
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The environmental laws continue to be amended and revised to impose stricter obligations, and compliance with future additional environmental requirements could necessitate capital outlays.
−Removed: However, the Company does not believe that these
−Removed: expenditures will ultimately result in a material adverse effect on its financial position or results of operations.
+Added: However, the Company does not believe that these expenditures will ultimately result in a material adverse effect on its financial position or results of operations.
The Company cannot predict the precise effect such future requirements, if enacted, would have on the Company.
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Human Capital, Environmental, Social and Governance
−Removed: As of December 31, 2022, we had approximately 8,000 employees of which 7,600 were permanent employees and 400 (5)% were temporary employees.
−Removed: 6,100 (80)% of the Company's employees are international and 1,500 (20)% of the Company's employees are in the United States.
+Added: As of December 31, 2023, CVG employs approximately 8,200 employees of which 7,700 are permanent employees and 500 are temporary employees.
+Added: Approximately 6,200 (81%) of the Company's permanent employees are located outside of the United States and 1,500 (19%) are located in the United States.
It is customary for the Company to employ temporary employees to both flex up/down to demand rates.
−Removed: Of our permanent workforce, approximately 1,000 (13)% were salaried and the remainder were hourly As of December 31, 2022, all of the Company's U.S.
−Removed: employees were non-union and a majority of the Company's personnel in Mexico were unionized.
−Removed: Approximately 74% of our European, Asian and Australian operations were represented by some form of shop steward committees.
+Added: Of our permanent workforce, approximately 1,000 (13%) are salaried and the remainder are hourly.
+Added: As of December 31, 2023, all of the Company's U.S.
+Added: employees are non-union and a majority of the Company's personnel in Mexico are unionized.
+Added: Approximately 74% of our European, Asian and Australian operations are represented by some form of shop steward committees.
The Company is committed to establishing and developing a workforce to support our long-term diversification and growth strategy through targeted external recruiting, and internal development and succession planning.
−Removed: We have developed leaders and emerging leaders for targeted training opportunities and have leveraged online learning platforms to make training more accessible for our workforce.
+Added: We continue to develop our leaders and identify emerging leaders for targeted training opportunities and continue to leverage virtual learning platforms to make training more accessible for our global workforce.
Compensation and Benefits - Our compensation programs reinforce a pay-for-performance philosophy with market-based compensation and benefits that are competitive for the manufacturing sector.
Specific programs vary worldwide based on regional practices and benchmarks.
−Removed: Diversity, Equity and Inclusion - The Company is intentional in its commitment to diversity, equity and inclusion including a diverse Board of Directors and executive leadership team.
−Removed: Approximately one fourth of our current Board is diverse by race or gender and one fourth of our current executive team is diverse by race or gender with others bringing diversity of experience, thought and perspective to their leadership roles.
+Added: Diversity, Equity and Inclusion - The Company is intentional in its commitment to diversity, equity and inclusion including ensuring a diverse Board of Directors and executive leadership team.
+Added: Approximately one-third of our current Board is diverse by race or gender and one-fourth of our current executive team – including our President and Chief Executive Officer James Ray – is diverse by race or gender with others bringing diversity of experience, thought and perspective to their leadership roles.
Among our global workforce, 49% is female, and among our domestic workforce, 32% is racially diverse.
The Company recognizes the importance of leveraging diversity, equity and inclusion in who we are and how we work.
−Removed: Our Executive Diversity & Inclusion Steering Committee continues to focus on expanding the diversity of our talent pipeline through our recruiting, development, communication, and retention.
+Added: We continue to focus on expanding the diversity of our talent pipeline through our recruiting, development, communication, and retention.
We will focus on the role our culture plays in creating the right environment for diverse thinking and inclusive approaches to work.
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Safety - The safety of our workforce has always been a top priority and the Company is proud of our safety record, which includes three consecutive years of declining recordable incidents and five consecutive years of declining incident rates.
−Removed: Our 2022 full year incident rate of 0.52 is below the industry benchmarks and a 20% decrease year over year while working approximately 300,000 more hours.
−Removed: The impact of the COVID-19 pandemic during 2022 continued to require our focus and monitoring.
−Removed: We continued the evolution of safety practices and procedures to protect our employees, ensuring our work continuity as an essential manufacturing employer.
−Removed: During 2022, we maintained our prevention and mitigation strategies including minimal travel across borders where non-essential, visitor restrictions, and site screening protocols were in place.
−Removed: We continue to use safety programs in our largest facilities for rapid onsite antibody testing and high-capacity thermal scanners.
−Removed: As we see surges occur in local areas, our sites have adopted flexible programs regarding masks and social distancing as required.
−Removed: Some of our plants continue to operate with masking policies where we experience a surge in cases both in the facility or the larger community.
−Removed: CVG is committed to operating in an ethical and sustainable manner that benefits all our stakeholders including customers, employees and the communities we serve.
+Added: Our 2023 full year incident rate of 0.37 is below the industry benchmarks and a 19% decrease year over year while working approximately 72,000 fewer hours.
+Added: CVG is committed to operating in an ethical and sustainable manner that benefits all our stakeholders including customers, employees, shareholders and the communities we serve.
We have established company-wide environmental, human rights and labor rights policies that outline the Company’s standards for all business operations.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.