South Korean automotive components maker Mando has said that it has signed a US$125 million deal to supply electric power steering systems to Russian carmaker AutoVAZ for five years from 2007.
The Korea Herald said that it is the first-ever order a Korean parts manufacturer has received from a Russian automaker.
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The order adds to Mando’s growing presence in global markets. Korea’s second largest parts maker (Hyundai Mobis is the biggest) has won a number of sizeable overseas deals this year, including US$215m from Chinese carmakers including SGM, US$386m from General Motors Corp. and US$68m from Ford Motor Co.
Mando said it has secured orders worth a total of US$5.4 billion since 2000.
The AutoVAZ car in which Mando’s EPS will be used is the first Russian car targeting European exports, the Korean company said.
“To develop products that are fit for Russia’s climate conditions, we tested them in northern China which has similar winter weather,” a Mando official said, according to the Korean Herald.
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By GlobalData“We expect to secure more orders in the country as the Russian auto market is rapidly expanding,” the official added.
