Fiat-owned supplier Magneti Marelli has won a major contract to supply PSA/Peugeot-Citroen with all its in-car communications systems.
The deal will help Magneti Marelli achieve its aim of doubling net sales of automotive telematics systems from its 1999 level of E360 million a year, said President and CEO Domenico Bordone.
Terms were not disclosed.
The Italian supplier has also said it will supply telematics systems for the Alfa Romeo 147 and the replacement for the Fiat Brava and Bravo, codenamed Tipo C within Fiat.
Bordone said telematics are an increasingly important part of the company's business. Its largest telematics customers last year were Fiat (31 percent of its telematics sales), PSA (21 percent) and both Renault and VW with 10 percent.
The Magneti Marelli deal is the fourth major contract signed by PSA with suppliers over the past year. Covering electronic systems, thermal systems and aluminum supply, the other contracts were signed with Delphi, Valeo and Pechiney respectively.
Bordone said: 'We are close to announcing an alliance with a major European mobile phone maker.'
Full Bordone interview, see page 16