NEW ALBANY, Ohio (AP) — Heavy truck equipment supplier Commercial Vehicle Group Inc. has reached a deal to sell seating systems, flooring and plastic interior components to Daimler Trucks North America LLC.
Terms of the deal weren't disclosed, but the contract runs through 2014 to provide parts for Daimler Trucks' factories in Saltillo and Santiago, Mexico, as well as three U.S. factories. Under the agreement, CVG will open a new factory near Saltillo.
The New Albany, Ohio-based Commercial Vehicle's parts will be used on several Daimler Truck models.
The company expects its new Saltillo plant to cost a total of $4 million to $5 million and be in operation in mid-2011.
CVG also will use the factory to supply other customers. It expects that new business wins and reduced costs will result in positive operating income results, the company said in a statement.
Shares of Commercial Vehicle Group fell 34 cents, or 3.2 percent, to $10.16 in afternoon trading.