Linamar lands $200M-per-year auto-parts contract

Linamar Corp. has been awarded a multi-year driveline-module supply contract with a major European auto manufacturer that the company estimates will be worth more than $200 million annually once the program reaches full production. The company, based in Guelph, Ont., is scheduled to start of production in 2011, with full production hitting its stride in 2014.

“This is a transformational business win for our European group testament to the dedication and focus of our team to realize our globalization and diversification strategies,” said Linamar CEO Linda Hasenfratz. “It is also a huge win for our new driveline systems businesses, which are levering off a global focus on AWD systems.”

This contract is a boon for the Canadian parts giant, which was hit by the collapse of General Motors earlier in the month. Linamar said in a press release at that time that it had limited its exposure to GM’s bankruptcy. “We feel that we are in a strong position to weather the situation given steps we have taken over the past months to minimize our exposure”, Hasenfratz said in early June.

Linamar is a global manufacturing company of highly engineered products, and its powertrain and driveline-focused divisions are leaders in the collaborative design, development and manufacture of precision metallic components, modules and systems for vehicle and power generation markets.