LG and Magna form powertrain joint venture
New company to supply e-powertrain components such as motors and inverters
LG Electronics and Magna International said on Wednesday that they have signed the agreement to form their joint venture that will supply auto-components.
LG Electronics said its has sold 49% of the shares in its wholly owned subsidiary that was formed on July 1 to Magna for US$453 million.
The joint venture, called LG Magna e-Powertrain, will focus on supplying e-powertrain components such as motors, inverters and on-board charges, they said.
The new company will be based in Incheon, South Korea.
It will also operate two subsidiaries: LG Magna e-Powertrain USA Inc at Michigan and LG Magna Nanjing e-Powertrain Vehicle Components Co., Ltd at China.
LG also named the top executives of the management team at LG Magna e-Powertrain.
The first CEO of the new company has been named as Cheong Won-suk, a LG veteran who headed the green business at LG’s vehicle component solutions business unit. He also spend a decade at Daewoo Motors R&D prior to joining LG, the companies said.
Magna’s Javier Perez will join the new company as COO. The companies said he has near quarter century of experience in the automotive industry, 18 years of which were based in Asia.