Westport Fuel Systems Awarded Key Electronics Supply Contract

Rhea-AI Summary

Westport Fuel Systems has secured a long-term agreement to supply electronic control units to a leading Tier One automotive supplier. This contract involves the manufacture of units for electric water pumps in two light-duty vehicle models, commencing in Q1 2021. The agreement spans seven years with an estimated sales value of US $58 million. This deal highlights Westport's competitive electronics offerings and manufacturing capabilities, reinforcing its position as a global leader in clean transportation technologies.

Positive

• Secured a long-term agreement valued at US $58 million for electronic control units.
• Contract spans seven years, indicating sustained revenue generation.
• Products contribute to reduced energy consumption and lower emissions, aligning with environmental goals.

Negative

• None.

VANCOUVER, British Columbia, Aug. 31, 2020 (GLOBE NEWSWIRE) -- Westport Fuel Systems Inc. (“Westport Fuel Systems” or the “Company”) (TSX:WPRT / Nasdaq:WPRT) today announced that it has been awarded a long-term agreement for the supply of electronic control units to a leading Tier One automotive supplier.

Westport Fuel Systems will manufacture and supply the electronic control units that will be integrated in the electric water pumps of two light-duty vehicle models of the counterparty automotive original equipment manufacturer (“OEM”) in Europe, starting in the first quarter of 2021. The electric coolant pump is the core component of the vehicle cooling system and will result in reduced energy consumption and lower emissions. The electronic control units are to be supplied over a seven-year period with an estimated sales value of US $58 million.

“Westport Fuel Systems is a global leader in gaseous fuel components and systems for clean transportation and this new contract confirms the competitiveness of our electronics product offerings and manufacturing capabilities” said David M. Johnson, Chief Executive Officer of Westport Fuel Systems. “This supply contract is further evidence of our ability to offer diverse, competitive and market-leading products and services to the global automotive industry.”

About Westport Fuel Systems

At Westport Fuel Systems, we are driving innovation to power a cleaner tomorrow. We are a leading supplier of advanced fuel delivery components and systems for clean, low-carbon fuels such as natural gas, renewable natural gas, propane, and hydrogen to the global automotive industry. Our technology delivers the performance and fuel efficiency required by transportation applications and the environmental benefits that address climate change and urban air quality challenges. Headquartered in Vancouver, Canada, with operations in Europe, Asia, North America and South America, we serve our customers in more than 70 countries with leading global transportation brands. At Westport Fuel Systems, we think ahead. For more information, visit www.wfsinc.com.

Investor Inquiries:

Shawn Severson
Investor Relations
T: +1 604-718-2046
E: invest@wfsinc.com

FAQ

What is the significance of Westport Fuel Systems's new contract?

Westport has secured a contract worth US $58 million to supply electronic control units, enhancing its revenue stream over the next seven years.

When does the supply contract for Westport Fuel Systems begin?

The supply contract is set to commence in Q1 2021.

Which automotive components will Westport supply?

Westport will supply electronic control units for electric water pumps used in two light-duty vehicle models.

Who is the client for Westport Fuel Systems's new contract?

The client is a leading Tier One automotive supplier, although specific names are not disclosed.

How does this contract impact Westport's market position?

This contract reinforces Westport's competitiveness in the global clean transportation market.