Go to Contents Go to Navigation

(LEAD) LG Electronics to set up EV parts JV with Canada's Magna

All News 16:24 December 23, 2020

(ATTN: ADDS more details in paras 4, 6-9)

SEOUL, Dec. 23 (Yonhap) -- LG Electronics Inc. said Wednesday it will launch an electric car parts joint venture worth about US$1 billion next year with Canadian auto parts company Magna International Inc. as it seeks to boost its presence in the auto parts industry.

The South Korean electronics giant said it will hold a 51 percent stake in the joint venture, with the rest owned by Magna International.

LG said it will first spin off its electric car parts business to create the new company, tentatively named LG Magna e-Powertrain Co., which will then be partly acquired by Magna International for $453 million.

The new joint venture will specialize in manufacturing electric car motors and parts such as inverters and board chargers.

This image, provided by LG Electronics Inc. on Dec. 23, 2020, shows a graphic of electric car parts. The company said the same day it will launch an electric car parts joint venture with Canadian auto-parts company Magna International Inc. next year. (PHOTO NOT FOR SALE) (Yonhap)

LG said it plans to hold a shareholder meeting in March next year for approval of its plan and launch the joint venture in July.

The company, which has experience in developing electric vehicle (EV) components for General Motors' Chevrolet Bolt and Jaguar's I-Pace, said the joint venture will improve its competitiveness in the EV parts business through synergy with Magna, which has expertise in electric powertrain systems.

The move comes after LG Electronics bought Austrian automotive lighting system firm ZKW Group in a deal worth 1.44 trillion won (US$1.3 billion) in 2018.

The broader LG Group has recently focused its efforts on electric car parts technology, with affiliate LG Chem Ltd. spinning off its EV battery business into a separate company, LG Energy Solution Ltd., earlier this month.

Shares in LG Electronics surged by the daily permissible limit of 30 percent to close at 119,500 won, far outperforming the broader KOSPI's near 1 percent gain. Shares in LG Corp., the holding company of LG Group, also rose 10.34 percent to 86,400 won.

yunhwanchae@yna.co.kr
(END)

Issue Keywords
Most Liked
Most Saved
Most Viewed More
HOME TOP
Send Feedback
How can we improve?
Thanks for your feedback!