Kongsberg Automotive’s Driveline business area has been awarded a contract for the supply of a manual gear shift system to an unnamed European OEM, in a deal worth EUR28.8m (US$38.5m) for a six-year period.

The gear shifters will be used in the OEM’s next generation of small-sized cars, with production starting in the fourth quarter of 2016 at KA’s facility in Vrable, Slovakia.

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Peak volumes are expected to exceed 200,000 shifters in 2018.

“This award from a key European OEM for their next generation of small cars illustrates the importance of being competitive on a wide range of vehicles, understanding the customer needs and providing the quality service and products they require,” said Kongsberg Automotive’s Driveline business vice president, global sales & marketing, Ian van Duijvenboode.

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