SEOUL, July 28 (Korea Bizwire) — LG Electronics Inc. said Wednesday it has completed its stock sales deal with Canadian auto parts maker Magna International Inc. over their electric vehicle (EV) powertrain joint venture.
The South Korean tech giant announced that Magna has acquired a 49 percent stake in LG Magna e-Powertrain Co. for US$453 million under their joint venture agreement.
LG Magna e-Powertrain was established on July 1 after LG spun off its EV parts business covering high power distribution modules and battery heaters. LG will keep a 51 percent stake in the joint venture.
Headquartered in Incheon, 40 kilometers west of Seoul, LG Magna e-Powertrain will have about 1,000 workers to research and produce powertrain products, like motors and inverters, and on-board chargers for EVs.
The joint venture has two subsidiaries — LG Magna Nanjing e-Powertrain Vehicle Components Co. and LG Magna e-Powertrain USA Inc.
LG said the joint venture will officially appoint its management executives at a board meeting next month.
LG said Cheong Won-suk, who has been leading its EV powertrain business at the company’s vehicle components solutions (VS) unit, will be its CEO of the joint venture. Javier Perez, who has been overseeing Magna’s production and quality management in Asia, will be its CEO for the joint venture, it added.
LG is looking to beef up its competitiveness in the future mobility sector with three main pillars — infotainment, powertrains and auto lighting systems.
With its joint venture with Magna covering the power train sector, ZKW Group, an Austria-based firm that LG acquired in 2018, will lead the automotive lighting business.
LG’s existing VS unit will focus on developing infotainment systems for future vehicles.