CVG to Close Cab Assembly Plant

Commercial vehicle Group said it will close its Norwalk, Ohio, truck cab plant due to Navistar Inc.'s decision to assemble cabs for its own trucks.

The move means that 120 employees will lose their jobs when the facility closes in April, CVG said in a statement.

CVG has assembled cabs for Navistar since 2002, Navistar said. Navistar will move CVG’s work to its own plant in Escobedo, Mexico.

CVG estimated the loss of the contract will lower its 2010 revenue by $10 million to $15 million. Excluding one-time costs associated with the plant closing, CVG said it doesn't expect the move to change its operating profit.