CVG Announces New Structure to Support Market-Focused Strategy
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.
Commercial Vehicle Group (CVGI) ha annunciato una significativa ristrutturazione organizzativa con effetto dal 1 gennaio 2025. L'azienda si riorganizzerà in tre divisioni operative: Sistemi Elettrici Globali, Sedili Globali, e Sistemi e Componenti di Rivestimento. L'unità di business Aftermarket & Accessori sarà integrata in questi segmenti, con il suo portafoglio distribuito di conseguenza.
Le principali nomine dirigenziali includono Russell Ketteringham come Presidente dei Sedili Globali, Donald Fishel come Presidente dei Sistemi e Componenti di Rivestimento, e Peter Lugo che continuerà a guidare i Sistemi Elettrici. Questa ristrutturazione segue le iniziative del 2024 di CVG per semplificare le operazioni e ridurre i costi. L'azienda si aspetta che la nuova struttura migliori la focalizzazione sul mercato e l'efficienza operativa, riducendo al contempo i costi corporativi e amministrativi.
CVG inizierà a riportare secondo questa nuova struttura di segmenti dal primo trimestre del 2025, con risultati storici trimestrali di segmento che saranno forniti.
Commercial Vehicle Group (CVGI) ha anunciado una importante reestructuración organizativa que entrará en vigor el 1 de enero de 2025. La compañía se reorganizará en tres divisiones operativas: Sistemas Eléctricos Globales, Asientos Globales, y Sistemas y Componentes de Acabado. La unidad de negocio de Repuestos y Accesorios se integrará en estos segmentos, distribuyendo su cartera en consecuencia.
Los nombramientos clave en liderazgo incluyen a Russell Ketteringham como Presidente de Asientos Globales, a Donald Fishel como Presidente de Sistemas y Componentes de Acabado, y a Peter Lugo, quien seguirá liderando los Sistemas Eléctricos. Esta reestructuración sigue las iniciativas de CVG en 2024 para optimizar las operaciones y reducir costos. La empresa espera que la nueva estructura mejore el enfoque en el mercado y la eficiencia operativa, al mismo tiempo que reduce los costos corporativos y administrativos.
CVG comenzará a informar bajo esta nueva estructura de segmentos desde el primer trimestre de 2025, con resultados trimestrales históricos de segmentos que se proporcionarán.
상업용 차량 그룹 (CVGI)가 2025년 1월 1일부로 대규모 조직 개편을 발표했습니다. 회사는 글로벌 전기 시스템, 글로벌 좌석, 마감 시스템 및 부품의 세 개 운영 부문으로 재편성됩니다. 애프터마켓 및 액세서리 사업 부문은 이들 세그먼트에 통합되어 포트폴리오가 적절히 배분될 것입니다.
주요 리더십 임명으로는 러셀 케터링햄이 글로벌 좌석의 사장으로, 도널드 피셀은 마감 시스템 및 부품의 사장으로, 피터 루고는 전기 시스템을 계속 이끌게 됩니다. 이번 구조조정은 CVG의 2024년 이니셔티브에 따른 것으로, 운영을 간소화하고 비용을 절감하려는 목적입니다. 회사는 새로운 구조가 시장 집중도와 운영 효율성을 강화하고, 기업 및 관리 비용을 줄이는 데 도움이 될 것으로 기대하고 있습니다.
CVG는 2025년 1분기부터 이 새로운 세그먼트 구조 하에 보고를 시작하며, 역사적인 분기별 세그먼트 결과도 제공될 예정입니다.
Commercial Vehicle Group (CVGI) a annoncé une importante réorganisation qui entrera en vigueur le 1er janvier 2025. L'entreprise sera réorganisée en trois divisions opérationnelles : Systèmes Électriques Globaux, Sièges Globaux et Systèmes et Composants de Finition. L'unité commerciale Après-vente et Accessoires sera intégrée dans ces segments, avec son portefeuille distribué en conséquence.
Les principales nominations au leadership incluent Russell Ketteringham en tant que Président des Sièges Globaux, Donald Fishel en tant que Président des Systèmes et Composants de Finition, et Peter Lugo continuant de diriger les Systèmes Électriques. Cette réorganisation fait suite aux initiatives de CVG en 2024 visant à rationaliser les opérations et à réduire les coûts. L'entreprise s'attend à ce que la nouvelle structure améliore la concentration sur le marché et l'efficacité opérationnelle tout en réduisant les coûts d'entreprise et d'administration.
CVG commencera à faire rapport sous cette nouvelle structure de segments à partir du premier trimestre 2025, avec des résultats historiques trimestriels par segment qui seront fournis.
Commercial Vehicle Group (CVGI) hat eine umfassende organisatorische Umstrukturierung angekündigt, die am 1. Januar 2025 in Kraft tritt. Das Unternehmen wird in drei Geschäftsbereiche umstrukturiert: Globale Elektronische Systeme, Globale Sitze und Trimmsysteme und Komponenten. Die Geschäftseinheit Aftermarket & Zubehör wird in diese Segmente integriert, wobei ihr Portfolio entsprechend verteilt wird.
Zu den wichtigen Führungsbenennungen gehören Russell Ketteringham als Präsident der Globalen Sitze, Donald Fishel als Präsident der Trimmsysteme und Komponenten sowie Peter Lugo, der weiterhin die Elektronischen Systeme leitet. Diese Umstrukturierung folgt den Initiativen von CVG im Jahr 2024 zur Straffung der Abläufe und Kostensenkung. Das Unternehmen erwartet, dass die neue Struktur die Marktfokussierung und operative Effizienz verbessert und gleichzeitig die Unternehmens- und Verwaltungskosten senkt.
CVG wird ab dem ersten Quartal 2025 unter dieser neuen Segmentstruktur berichten, wobei historische vierteljährliche Segmentergebnisse bereitgestellt werden.
- Streamlined organizational structure reducing administrative costs
- Market-focused reorganization potentially improving operational efficiency
- Clear leadership structure with dedicated presidents for each division
- Additional transition costs may impact short-term financial performance
- Organizational disruption during restructuring implementation
Insights
This organizational restructuring at CVG represents a strategic pivot towards market-focused operations, consolidating operations into three core segments: Global Electrical Systems, Global Seating and Trim Systems and Components. The absorption of the Aftermarket & Accessories unit into these segments suggests a streamlined approach to reduce operational redundancies and enhance cost efficiency.
The timing of this restructuring, following CVG's 2024 cost optimization initiatives, indicates a methodical approach to organizational transformation. By aligning reporting segments with product lines and customer needs, CVG is positioning for improved operational efficiency and market responsiveness. This structure should enable better resource allocation and potentially improve margins through reduced administrative overhead.
For investors, this restructuring carries minimal immediate financial impact but positions CVG for potentially improved long-term operational performance. The focus on product-specific business units could lead to better market penetration and more targeted growth strategies in each segment.
The reorganization's most significant financial implications lie in the potential for reduced corporate and administrative costs, aligning with CVG's current revenue profile. This suggests management's recognition of the need to optimize operational efficiency in response to market conditions.
The transition to market-focused reporting segments, effective Q1 2025, will provide enhanced transparency into segment-specific performance metrics. This granular visibility should enable investors to better evaluate the success of individual business units and their contribution to overall company performance. The promised historical quarterly segment results under the new structure will be important for establishing performance benchmarks and tracking improvement trajectories.
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?
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How will CVGI's Aftermarket & Accessories business be integrated into the new structure?
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