LG Electronics joins hands with the world’s third largest’electric vehicle parts’ business wing

-When LG Electronics establishes a new company through physical division, a joint venture’LG Magna e-Powertrain’ (tentative name) will be established in a way that Magna acquires a 49% stake in the new company. Magna decided to acquire a 49% stake in the new corporation for 453 million dollars (about 501.6 billion won). LG Electronics plans to officially launch the LG Magna e-Powertrain in July of next year after receiving final approval of the plan for the establishment of a joint venture and the physical division at the general shareholders’ meeting held in March next year. Currently, more than 1,000 employees of LG Electronics’ VS Business Division will move to the new corporation, and the headquarters will be located in Incheon, where the main business site of the VS business division is located. It is a good idea to assume the CEO of the new corporation at LG Electronics and the Chief Operating Officer at Magna.

○ LG, reborn as a comprehensive electric electronics company

LG Electronics and Magna joined hands to preoccupy the powertrain field in the rapidly growing electric vehicle market. Magna is the world’s third-largest auto parts maker in terms of sales last year and produces a variety of auto parts such as powertrain, chassis, interior and exterior. It has joined hands with LG Electronics, which boasts electric vehicle motor and inverter technology, to continue its component competitiveness in the internal combustion locomotive market even in the electric vehicle era. LG Electronics is supplying motors to electric vehicles such as Chevrolet Volt EV and Jaguar I-PACE. Magna has invested in LG Electronics’ motor technology. LG Electronics is expected to be able to secure powertrain design technology in partnership with Magna and establish a mass production system early in connection with Magna’s global automobile customer network. Magna is also mentioned as a leading partner in Apple’s electric vehicle development plan’Project Titan’. The automotive industry predicts that the electric vehicle powertrain market will grow from 10 trillion won this year to 50 trillion won within five years.

It is analyzed that the establishment of this joint venture has clarified the outline of the electronics business portfolio that LG Electronics devoted itself to creating the VS business headquarters in 2013. The remaining VS business division at LG Electronics focuses on vehicle infotainment, which is competing for the first and second place in global market share, and the joint venture will take over the powertrain. Here is ZKW, a premium vehicle headlamp company that LG Electronics acquired in 2018. At the end of last year, LG Electronics transferred and integrated the vehicle lamp business in the VS business division to ZKW. LG Electronics is predominant in the prospect of turning to a surplus next year in the electronics business.

At the LG Group level, various subsidiaries are referred to as’wheeled information technology (IT) devices’ and are equipped with various parts in automobiles that are becoming electronic. LG Energy Solutions ranks first in the global electric vehicle battery market, and LG Innotek is increasing its share of vehicle communication equipment.

Hong Seok-ho [email protected], reporter Seo Dong-il