What changed in this filing

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Item 1. Business

2025-03-17 compared with 2024-03-14 · 30 added, 49 removed, 184 unchanged (30% of the section changed)

1 unchanged sentence

Commercial Vehicle Group, Inc.

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.

and its subsidiaries, is a global provider of systems, assemblies and components to the global commercial vehicle market and the electric vehicle markets.

We deliver real solutions to complex design, engineering and manufacturing problems while creating positive change for our customers, industries, and communities we serve.

4 unchanged sentences

We primarily manufacture customized products to meet the requirements of our customer.

We believe our products are used by a majority of the North American Commercial Truck manufacturers, many construction vehicle original equipment manufacturers ("OEMs"), parts and service dealers, distributors, as well as top e-commerce retailers.

We believe our products are used by a majority of the North American Commercial Truck manufacturers, many construction and agriculture vehicle original equipment manufacturers ("OEMs"), parts and service dealers and distributors.

Our Long-term Strategy

Refer to Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations.

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.

During the year ended December 31, 2024, the Company sold its cab structures business with operations in Kings Mountain, North Carolina and its First Source Electronics (FSE) business with operations in Elkridge, Maryland.

The FSE business was the Company's Industrial Automation segment.

These divestitures represent a strategic shift in CVG's business and, in accordance with U.S.

GAAP, qualified as discontinued operations.

As a result, the operating results related to the cab structures business and Industrial Automation segment have been reflected as discontinued operations in the Consolidated Statements of Operations.

See Note 17, Discontinued Operations, for additional information on the divestitures.

As a result of classifying the Industrial Automation reporting segment as a discontinued operation, CVG has three reportable segments for 2024:

Vehicle Solutions, Electrical Systems and Aftermarket & Accessories.

The financial information reported for Vehicle Solutions and Aftermarket & Accessories excludes the activity from the Kings Mountain, North Carolina facility as a result of the divestiture.

Our segments offer various products which are sold into many end user markets such as internal combustion commercial vehicles, electric vehicles, construction and agriculture equipment, power sports, and military.

Certain of our facilities manufacture and sell products through multiple business segments.

3 unchanged sentences

This segment includes a portion of the Company’s activities in the electric vehicle market.

• 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.

• Plastic & Trim components primarily for the North America commercial vehicle market, medium-duty/heavy-duty ("MD/HD") truck market, and power sports markets.

The Electrical Systems segment designs, manufactures and sells the following products:

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• Office seats primarily sold into the commercial and home office furniture distribution channels in Europe and Asia-Pacific.

The Industrial Automation segment designs, manufactures and sells the following products:

• Warehouse automation subsystems including control panels, electro-mechanical assemblies, cable assemblies, and power and communication solutions.

• The end markets for these products primarily include e-commerce, warehouse integration, transportation and the military/defense industry.

The charts below display CVG's net sales by segment and geography for the year ended December 31, 2024.

25 unchanged sentences

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 ™ .

CVG sold its FinishTEK business effective January 31, 2024.

Cab Structures .

We design, manufacture and assemble complete cab structures.

Our cab structures, which are manufactured from both steel and aluminum, are delivered fully assembled and primed for paint.

Our plastic products are sold under the AdvancTEK ™ brand name.

ELECTRICAL SYSTEMS SEGMENT OVERVIEW

6 unchanged sentences

Our engineering and production capabilities include virtual wiring boards, automatic plug insertion stations, system architecture and schematic development and prototyping.

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.

Our electrical systems segment products are sold into the construction, agriculture, industrial and electric vehicles, traditional automotive, mining, rail, marine, power generation and the military/defense industries in North America, Europe and Asia-Pacific.

AFTERMARKET & ACCESSORIES SEGMENT OVERVIEW

3 unchanged sentences

Our aftermarket products are primarily sold through the Original Equipment Service (OES) sales channel and direct into the retail aftermarket as replacements for original equipment in North America, Europe and Asia Pacific.

INDUSTRIAL AUTOMATION SEGMENT OVERVIEW

Industrial Automation Segment Products

Electrical Systems, Control Panel Assemblies, and Electro-Mechanical Assemblies .

We offer a wide range of material handling equipment, electrical distribution systems, and related assemblies primarily for the e-commerce, warehouse integration, transportation and the military/defense markets.

Our principal products in this category include:

Control Panel Assemblies.

We offer integrated assemblies and cabinets that are installed in industrial machinery equipment and transportation vehicles and may be integrated with our wire harness assemblies.

These components provide the user control over multiple operational functions and features.

Electro-Mechanical Assemblies.

We offer electro-mechanical assemblies, including box builds, complex automated and robotic systems, and large multi-cabinet control cabinets with power distribution, communication and cabling.

Our service includes mechanical assembly, wire and cable routing, automated wire preparation capabilities, complex configurations, test and custom palletizing and crating solutions.

OUR CONSOLIDATED OPERATIONS

12 unchanged sentences

to 33,000 lbs.

Separately, we are seeing changes in e-commerce behaviors that are driving increased demand for middle-mile and last-mile vehicles.

The following describes the major markets within the commercial vehicle market in which the Vehicle Solutions Segment competes:

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We believe CVG has a widely recognized brand portfolio and participates in most retail sales channels including original equipment dealer networks and independent distributors.

Construction Equipment Market.

New vehicle demand in the global construction equipment market generally follows certain economic conditions including gross domestic product, infrastructure investment, housing starts, business investment, oil and energy investment and industrial production around the world.

Within the construction market, there are two classes of construction equipment markets:

the medium and heavy construction equipment market (weighing over 12 metric tons) and the light construction equipment market (weighing below 12 metric tons).

Construction and Agriculture Equipment Market.

New vehicle demand in the global construction and agriculture equipment market generally follows certain economic conditions including gross domestic product, infrastructure investment, housing starts, business investment, oil and energy investment and industrial production around the world.

Within the construction and agriculture market, there are two classes of construction and agriculture equipment markets:

the medium and heavy construction and agriculture equipment market (weighing over 12 metric tons) and the light construction and agriculture equipment market (weighing below 12 metric tons).

We primarily supply OEMs with our wire harness and seating products.

Our construction equipment products are primarily used in the medium and heavy construction equipment markets.

Our construction and agriculture equipment products are primarily used in the medium and heavy construction and agriculture equipment market.

The platforms that we generally participate in include:

cranes, pavers, planers and profilers, dozers, loaders, graders, haulers, tractors, excavators, backhoes, material handling and compactors.

Demand in the medium and heavy construction equipment market is typically related to the level of larger-scale infrastructure development projects such as highways, dams, harbors, hospitals, airports and industrial development as well as activity in the mining, forestry and other commodities industries.

Purchasers of medium and heavy construction equipment include construction companies, municipalities, local governments, rental fleet owners, quarrying and mining companies and forestry related industries.

Purchasers of light construction equipment include contractors, rental fleet owners, landscapers, logistics companies and farmers.

Demand in the medium and heavy construction and agriculture equipment market is typically related to the level of larger-scale infrastructure development projects such as highways, dams, harbors, hospitals, airports and industrial development as well as activity in the mining, forestry and other commodities industries.

Purchasers of medium and heavy construction and agriculture equipment include construction companies, municipalities, local governments, rental fleet owners, quarrying and mining companies and forestry related industries.

Purchasers of light construction and agriculture equipment include contractors, rental fleet owners, landscapers, logistics companies and farmers.

Military Equipment Market.

1 unchanged sentence

Military equipment production is particularly sensitive to political and governmental budgetary considerations.

Industrial Automation Market.

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.

Additionally, increased throughput volume, a greater variety of order and package types, and more frequent product returns by end consumers, all support the rationale for continued investment in automated solutions by warehouse operators.

We supply material handling subsystems incorporated into automated warehouses.

Our Customer Contracts, and Sales and Marketing

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Our supply agreements generally provide for fixed pricing but do not require us to purchase any specified quantities.

Normally we do not carry inventories of raw materials or finished products in excess of what is reasonably required to meet production and shipping schedules, as well as service requirements.

Normally we do not carry inventories of raw materials or finished products in excess of what is reasonably required to meet production

and shipping schedules, as well as service requirements.

Steel, aluminum, petroleum-based products, copper, resin, foam, fabrics, wire and wire components comprise the most significant portion of our raw material costs.

30 unchanged sentences

Environmental

The Company is subject to changing federal, state, and local laws and regulations governing the protection of the environment and occupational health and safety, including laws regulating air emissions, wastewater discharges, generation, storage, handling, use and transportation of hazardous materials;

The Company is subject to changing federal, state, foreign and local laws and regulations governing the protection of the environment and occupational health and safety, including laws regulating air emissions, wastewater discharges, generation, storage, handling, use and transportation of hazardous materials;

the emission and discharge of hazardous materials into the soil, ground or air;

21 unchanged sentences

Specific programs vary worldwide based on regional practices and benchmarks.

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.

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.

Diversity of Thought and Inclusive Approach - The Company focuses on the role our culture plays in creating the right environment for diverse thinking and inclusive approaches to work that benefits our employees.

During regular engagements with our global leadership team, we highlight how our organizational evolution benefits from a culture of diversity.

Among our global workforce, 51% 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.

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.

During regular engagements with our leadership teams, we are highlighting how our organizational evolution benefits from a culture of diversity.

We are also reestablishing the connection to the communities where our employees live and work, enabling our teams to grow both professionally and personally.

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.

We are also making a concerted effort to connect to the communities where our employees live and work, enabling our teams to grow both professionally and personally.

Safety - The safety of our workforce has always been a top priority and the Company is proud of our safety record, which includes four consecutive years of declining recordable incidents and six consecutive years of declining incident rates.

Our 2024 full year incident rate of 0.34 is below the industry benchmarks and a 9% decrease year over year while working approximately 90,000 fewer hours.

11 unchanged sentences

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.

What changed 10-K

Item 1. Business