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.
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.
"We expect to secure more orders in the country as the
Russian auto market is rapidly expanding," the official
added.
