It will be a real giant for electric powertrainse, the one formed by LG Electronics and Magna International, two key companies for the automotive world. The two companies have announced the formation of a joint venture which will be called LG Magna e-Powertrain, and which will be based in Incheon, South Korea.
Leading the new company will be CEO Cheong Won-suk, an LG veteran who was most recently vice president and head of green business at LG Vehicle Components Solutions Company. Prior to LG, Cheong spent nearly a decade with Daewoo Motors’ R&D department. Javier Perez, in Magna since 2016, will be the COO of the new company. He will be responsible for overseeing the day-to-day operations of the joint venture. Perez brings nearly a quarter of a century of experience in automotive manufacturing and quality control.
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What and who will the new company take care of? First of all, Magna’s production capacity and experience in electric propulsion systems and world-class automotive manufacturing will be combined with the possibilities of developing components for electric motors and inverters that LG can give. Consequentially the joint venture will produce electric motors, inverters and on-board chargers and, for some car manufacturers, the related e-drive systems. LG Magna e-Powertrain’s workforce will consist of more than 1,000 employees in the United States, South Korea and China, while customers will be international.
The design, engineering and manufacturing synergies created by LG Magna e-Powertrain are expected to enable both companies to react quickly to market trends and capitalize on the growing global shift towards vehicle electrification. The new company will develop powertrain components that offer automakers a scalable portfolio, a word beautiful for several manufacturers because it will also mean savings in costs and time.