This image, provided by South Korean auto parts maker Mando Corp. on March 22, 2021, shows its suspension system for vehicles.
SEOUL, March 22 (Korea Bizwire) — Mando Corp., a South Korean auto parts maker, said Monday it has struck a deal to supply automotive suspension systems to Volkswagen Group.
The deal is valued at 1.4 trillion won (US$1.2 billion), the company said in a regulatory filing.
Mando said it will build 50 million suspension components from June 2022 through 2033 in its European factories for the German automotive group, without elaborating on the amount of the contract.
Volkswagen’s electric vehicles based on its own modular electric drive toolkit (MEB) platform, as well as its bestselling internal combustion vehicles across its Volkswagen and Audi brands, will be equipped with the suspension system, the Korean firm said.
The suspension system’s primary function is to maximize the overall performance of a vehicle by absorbing bumps on the road and provide a safe and comfortable ride.
Mando said the deal with Volkswagen will boost its bid to tap into the European electric vehicle component market, as the world’s No. 2 carmaker is in the midst of a major shift toward battery-powered cars.
(Yonhap)
