(Mando Corp.)
South Korean auto parts maker Mando said Monday that it had signed a strategic partnership deal with German automaker Volkswagen to provide some 50 suspension units. It is the single-largest order that Mando has received for the given product category.
Starting June next year until 2033, the Korean company will manufacture and supply the parts directly in Europe, with an anticipated annual production capacity of 6 million units.
Connecting a vehicle to its wheels, suspension units -- typically four to a car -- bear the weight of the vehicle and absorb shocks from uneven surfaces during driving.
The Mando-made parts will be applied to upcoming models built on the Modular Electric Drive Matrix, the German carmaker’s next generation electric vehicle platform, as well as to some conventional bestselling internal combustion engine models such as Golf, Tiguan and Passat, officials said.
Volkswagen earlier vowed to achieve 26 million electric cars in terms of accumulated sales and to introduce up to 75 all-electric models to the market by 2029.
“This latest deal with Volkswagen will mark a turning point for our business expansion in the European region,” said CEO Cho Seong-hyeon.
“While working with Volkswagen as strategic partner, we shall also exert efforts to co-work on other product categories.”
Mando is currently working to build partnership with Volkswagen Group China on the back of its manufacturing facilities in Beijing, which kicked off in 2002. Last year, Mando China provided around 14 million suspension parts to local automakers.
The Korean auto parts company has been making moves to expand its market share in line with the all-electric car and autonomous driving vehicle trend. Last month, it bought all shares of Mando-Hella Electronics for 165 billion won ($146 million), seeking to scale up the production of autonomous car parts overseas.
MHE was previously a 50-50 joint venture by German auto parts maker Hella and Halla Holdings, which is the holdings unit of Mando.
By Bae Hyun-jung (
tellme@heraldcorp.com)