TI Automotive Ltd. will supply 3 million plastic fuel tank systems to Volkswagen AG's European models. 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.
In a statement, TI CEO Bill Kozyra said: "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."