Magna-LG Electronics JV Targets Electrified Powertrains
Teaming up on electrification
LG Electronics and Magna International have formed a joint venture to produce a variety of components and systems for electrified vehicles, including:
- On-board chargers
The deal, which is expected to close next July, will broaden and accelerate the partners electrification capabilities—including a complete electric driveline.
Tentatively called LG Magna e-Powertrain, the JV is valued at about $1 billion and will employ 1,000 people at existing LG locations in the U.S., South Korea and China. LG will own 51% of the venture, with Magna holding the remaining 49%.
The new company combines Magna’s electric powertrain expertise and manufacturing capabilities with LG’s expertise in component development for e-motors and inverters.
Initial customers will include General Motors and Jaguar Land Rover.
What They’re Saying
“By combining our strengths, we expect to gain investment efficiency and speed to market with synergies to achieve more, all while continuing to capitalize on the acceleration of the electrified powertrain market,” says Magna President Swamy Kotagiri, who will succeed Don Walker as CEO on Jan. 1.
Adds Kim Jin-yong, president of LG’s Vehicle Component Solutions business: “Manufacturers need to be disruptive to maintain leadership positions in electrification and, through this deal, LG is entering a new phase in its automotive components business, a growth opportunity with enormous potential.”
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