Key Driveline Contract in North America worth EUR 108 Million (NOK 902 million)

Kongsberg Automotive’s Driveline business area has been awarded a significant supply agreement from a major North American OEM to supply Automatic Transmission Shift Cables.

The Shift Cables, to be used in B and C Segment vehicles, will be produced in KA’s Nuevo Laredo, Mexico and Wuxi, China production facilities and supplied to the customer’s assembly plants globally.  The estimated peak volume of the programs involved in these segments will reach 2.1 million cables annually by 2019 with production set to begin in the third quarter of 2016.  The estimated lifetime value of the contract is EUR 108 million (NOK 902 million) over the program life, with all programs phasing in over an 8 year period.

“Our customers are focusing more on standardization of components that can be leveraged across their global platforms.  Our market proven design and reliability of Shift cables has enabled us to give our customer the confidence and commitment to secure this major business award.   We will continue to push our KA standard cable design to our customer base to help meet their expectations on standardization while allowing us to be globally competitive” said Ian van Duijvenboode, VP Global Sales & Marketing, for Kongsberg Automotive’s Driveline business.    

“We are seeing our customers take a more global approach to sourcing.   With KA’s global footprint and standardized product design, combined with the best manufacturing practices, we are able to be an attractive partner to our customers”, said Joachim Magnusson, EVP of Kongsberg Automotive’s Driveline business.

Media:

Fredrik Tangeraas, Director, Corporate Communications

Phone: +47 32 77 05 35; Mobile: +4792464699

Investors / analysts:

Philippe Toth, Vice President, M&A / Investor Relations

Phone: +4732770503. Mobile: +4798214021

About Kongsberg Automotive:

Kongsberg Automotive provides world class products to the global vehicle industry. Our products enhance the driving experience, making it safer, more comfortable and sustainable. With revenues of close to EUR 1.0 billion and approximately 10.000 employees in 20 countries, Kongsberg Automotive is truly a global supplier. The company is headquartered in Kongsberg, Norway and has 32 production facilities worldwide. The product portfolio includes seat comfort systems, driver and motion control systems, fluid assemblies, and industrial driver interface products developed for global vehicle manufacturers. Find more information at www.kongsbergautomotive.com