LG Electronics and Magna International signed the transaction agreement which establishes a joint venture between the two companies (earlier post). The new company, to be called LG Magna e-Powertrain, is headquartered in Incheon, South Korea.
The joint venture company will manufacture e-motors, inverters and on-board chargers and, for certain automakers, related e-drive systems.
Leading the new company will be CEO Cheong Won-suk, a 20-year LG veteran who was most recently vice president and head of the LG Vehicle component Solutions Company’s Green Business. Prior to LG, Cheong spent nearly a decade with Daewoo Motors R&D.
Javier Perez, who has been with Magna since 2016, will be the new company’s COO. He will be responsible for overseeing the day-to-day operations of the joint venture. Perez brings nearly a quarter century of automotive manufacturing and quality control experience to LG Magna e-Powertrain, 18 of those years based in Asia.
The creation of the joint venture unifies Magna’s strength in electric powertrain systems and world-class automotive manufacturing, with LG’s expertise in component development for e-motors and inverters.
The design, engineering and manufacturing synergies created by LG Magna e-Powertrain is expected to enable both companies to react quickly to market trends and capitalize on the growing global shift toward vehicle electrification. The new company will develop powertrain components that offer automakers a scalable portfolio, from complete solutions enabling electrification and functionality to integrating intelligent operating software and controls in new e-drive systems.
LG Magna e-Powertrain will be made up of more than 1,000 employees in the United States, South Korea and China.