US-based Alcoa said on Tuesday its AFL Automotive unit has been awarded a supply contract by Volkswagen‘s Mexico plant, Dow Jones reported.


Alcoa told the news agency that AFL Automotive will design, develop and supply electrical distribution systems for Volkswagen’s [redesigned] Jetta/Bora model starting in 2005.


Alcoa did not disclose the value of the deal but the company said that Volkswagen expects to turn out 317,000 of the vehicles each year, Dow Jones noted.


VW said in January it would concentrate all production of the Jetta/Bora saloon derivative of its redesigned ‘Mark 5’ Golf in Mexico to supply markets other than North America; the current model is also built in Europe and South Africa.


Dow Jones said Alcoa has done business in Mexico for more than 20 years and has about 25,000 employees in the country, having laid off more than 4,000 this year as part of a restructuring plan.