New Company to Fuse Magna's and LG's Electric
Powertrain
Strengths to Accelerate E-Drive Component
Development
SEOUL, South Korea and
AURORA, ON, July 28, 2021 /CNW/ - LG Electronics (LG) and
Magna International Inc. (Magna) today signed the transaction
agreement which establishes a joint venture between the two
companies. The new company, to be called LG Magna e-Powertrain, is
headquartered in Incheon, South
Korea and will be led by a strong management team.
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. Announcing LG Magna e-Powertrain's
executive team marks a key milestone for the joint venture company,
which will manufacture e-motors, inverters and on-board chargers
and, for certain automakers, related e-drive systems.
The design, engineering and manufacturing synergies created by
LG Magna e-Powertrain is expected to enable both companies to
quickly react 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.
"Partnering with Magna enables LG to scale up its global
production, provide additional business opportunities and offer
synergies in procurement and technological innovation," said CEO
Cheong. "The integrated and collaborative approach is expected to
deliver quickly for customers and capitalize on the rapid growth of
the worldwide electric powertrain market."
"The market for e-motors, inverters and electric drive systems
is expected to have significant growth between now and 2030. Our
joint venture company will bring together experts from Magna and LG
to deliver a world-class portfolio of electric solutions," said COO
Perez. "Leveraging existing technologies, engineering capabilities
and global footprints, LG Magna e-Powertrain seeks to enable
advancements that help automakers achieve some of the biggest
challenges ahead in electrifying their full vehicle lineups."
LG Magna e-Powertrain will be made up of more than 1,000
employees in the United States,
South Korea and China.
About LG Electronics Inc.
LG Electronics is a global
innovator in technology and consumer electronics with a presence in
almost every country and an international workforce of more than
75,000. LG's four companies – Home Appliance & Air Solution,
Home Entertainment, Vehicle component Solutions and Business
Solutions – combined for global sales of over USD 56 billion in 2020. LG is a leading
manufacturer of consumer and commercial products ranging from TVs,
home appliances, air solutions, monitors, service robots,
automotive components. Its premium LG SIGNATURE and intelligent LG
ThinQ brands are familiar names world over. Visit
www.LGnewsroom.com for the latest news.
About Magna
Magna is more than one of the world's
largest suppliers in the automotive space. We are a mobility
technology company with a global, entrepreneurial-minded team of
158,000 employees and an organizational structure designed to
innovate like a startup. With 60+ years of expertise, and a systems
approach to design, engineering and manufacturing that touches
nearly every aspect of the vehicle, we are positioned to support
advancing mobility in a transforming industry. Our global network
includes 347 manufacturing operations and 84 product development,
engineering and sales centres spanning 28 countries.
For further information about Magna (NYSE: MGA); (TSX: MG),
please visit www.magna.com or follow us on Twitter
@MagnaInt.
FORWARD-LOOKING STATEMENTS
CERTAIN STATEMENTS IN THIS RELEASE CONSTITUTE "FORWARD-LOOKING
INFORMATION" OR "FORWARD-LOOKING STATEMENTS" (COLLECTIVELY,
"FORWARD-LOOKING STATEMENTS") UNDER APPLICABLE SECURITIES
LEGISLATION. WE USE WORDS SUCH AS "WILL", "BELIEVE", "EXPECT" AND
SIMILAR EXPRESSIONS SUGGESTING FUTURE OUTCOMES OR EVENTS TO
IDENTIFY FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS IN
THIS PRESS RELEASE INCLUDE, BUT ARE NOT LIMITED TO, STATEMENTS
RELATING TO: GROWTH IN THE MARKETS FOR INVERTERS, E-MOTORS AND
ELECTRIC DRIVE SUB-SYSTEMS; OUR ABILITY TO CAPITALIZE ON, AND
ACCELERATE GROWTH IN, THE ELECTRIC POWERTRAIN MARKET; AND
ACCELERATION OF TIME TO MARKET AND SCALE OF MANUFACTURING OF
ELECTRIFICATION COMPONENTS. THE FORWARD-LOOKING STATEMENTS IN THIS
RELASE ARE SUBJECT TO, AND EXPRESSLY QUALIFIED BY, THE CAUTIONARY
DISCLAIMERS THAT ARE SET OUT IN MAGNA'S REGULATORY FILINGS. PLEASE
REFER TO MAGNA'S MOST CURRENT MANAGEMENT'S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL POSITION, ANNUAL INFORMATION
FORM AND ANNUAL REPORT ON FORM 40-F, AS REPLACED OR UPDATED BY ANY
OF MAGNA'S SUBSEQUENT REGULATORY FILINGS, WHICH SET OUT THE
CAUTIONARY DISCLAIMERS, INCLUDING THE RISK FACTORS THAT COULD CAUSE
ACTUAL EVENTS TO DIFFER MATERIALLY FROM THOSE INDICATED BY SUCH
FORWARD-LOOKING STATEMENTS. THESE DOCUMENTS ARE AVAILABLE FOR
REVIEW ON MAGNA'S WEBSITE AT WWW.MAGNA.COM.
SOURCE LG Electronics Canada