CVG Announces Notice of Intention to Terminate Agreement with Volvo
On October 25, 2021, CVG (NASDAQ: CVGI) notified Volvo Group of its intention to terminate their agreement, effective one year from the notice date unless new terms are negotiated. The company aims to enhance profitability by implementing price increases on products that are not meeting margin targets. This strategic move emphasizes CVG's commitment to improving its financial performance and operational efficiency.
- CVG is proactively addressing profitability by implementing customer price increases.
- The termination notice allows CVG to re-evaluate and enhance its business strategies.
- Potential disruption in business operations due to the termination of the agreement with Volvo.
- The decision to terminate may indicate underlying challenges in meeting profitability targets.
NEW ALBANY, Ohio, Oct. 25, 2021 (GLOBE NEWSWIRE) -- CVG (NASDAQ: CVGI) announced today that they provided notice on October 25, 2021 to the Volvo Group (“Volvo”) of CVG’s intention to terminate its agreement with Volvo, with such termination to become effective twelve months from the date of notice, absent the parties reaching mutually agreeable terms upon which to continue their relationship. CVG is focused on implementing customer price increases where margin on product is not meeting profitability targets.
For further information, please contact IR@CVGRP.com.
About CVG
CVG is a global provider of components, assemblies and systems to the traditional commercial vehicle market, the electric vehicle market, and the warehouse automation market. Information about the Company and its products is available on the internet at www.cvgrp.com.
Investor Contact
Christopher Bohnert, Chief Financial Officer
CVG
IR@CVGRP.com
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