South Korea's Mando Corporation said it had won a contract to supply 50m suspension systems to the Volkswagen group from June 2022, according to local reports.

The company did not disclose the value of the contract but confirmed the parts would be supplied from European plants to be installed in Volkswagen and Audi models including models based on the German automaker's Modular Electrification Toolkit (MEB) platform as well as popular internal combustion engine vehicles.

Mando said the deal represented a major breakthrough in supplying parts to the European electric vehicle industry, particularly following Volkswagen's recently-announced major shift toward battery-powered vehicles.

Mando is one of South Korea's largest automotive component manufacturers, focused on the production of chassis systems including braking and suspension systems for Hyundai Motor Group and global automakers including Ford, GM, Stellantis, Volkswagen and Suzuki.

It employs over 12,400 people worldwide and generated a turnover of KRW6trn (US$5.3bn) in 2019. It has an extensive network of manufacturing plants in South Korea, China, India, Europe, US, Malaysia, Turkey and Brazil.