Mercia Asset Management PLC (AIM:MERC) hailed 40.3%-owned Warwick Acoustics securing its first commercial production contract with a leading global luxury vehicle manufacturer.
One of the top-10 luxury car manufacturers has signed a multi-year contract for the proprietary automotive audio system, the asset manager said in a statement, with this contract initially covering two vehicle programs.
While Warwick Acoustics has secured development contracts from five global automotive original equipment manufacturers (OEMs), said Mercia chief executive Mark Payton, “this landmark achievement represents the first transition of these into a commercial production agreement, following extensive evaluation and testing”.
The initial contract will require a significant expansion of Warwick Acoustics' design, development and manufacturing capabilities, Mercia said.
Based on its patented electrostatic transducer technology, Warwick Acoustics’ audio system is designed to deliver an “outstanding audiophile experience” while being significantly lighter in weight than traditional car stereo systems, using less energy and offering other sustainability features.
Said Payton: "We first backed this University of Warwick spinout through our managed funds in 2009, as it sought to develop high-end headphones that have received global recognition and are sold worldwide. We first invested from our balance sheet in 2014 and have supported Warwick Acoustics as it resolved numerous technical and manufacturing challenges to reach the position they are in today – ready to revolutionise the passenger acoustic experience in high-end, sustainable vehicles."