DETROIT -- TI Automotive LLC announced today it has signed a new contract to supply three million plastic fuel tank systems to Volkswagen Group's European models.
Production of the systems will begin in 2011 at TI's facilities in Ettlingen and Rastatt, Germany, and Pamplona, Spain.
The systems will be installed on Audi, Volkswagen, Seat and Skoda models.
The deal effectively consolidates a large piece of VW's global production in TI's hands and represents about a third of TI's global volumes.
TI declined to reveal the dollar amount of the deal.
“Through this new program, we will continue developing innovative, lightweight fuel tank systems that will reduce emissions and help Volkswagen meet its goal of becoming the world's largest automaker,” TI CEO Bill Kozyra said in a statement.
In the past seven months, TI has inked new contracts totaling $3 billion with automakers, including a deal with Daimler AG that has TI supplying fuel tanks for most of Daimler's Mercedes-Benz models.
TI currently supplies fuel tanks systems to the VW Passat in Asia and the Audi Q5 and VW Caddy in Europe.
TI ranks No. 71 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $1.69 billion in 2009. TI is based in Oxford, England, but maintains its operational headquarters in suburban Detroit.