LG Electronics' joint venture with Canada's Magna awaits approval by shareholders in March

By Lim Chang-won Posted : February 26, 2021, 16:28 Updated : February 26, 2021, 16:48

[Courtesy of LG Electronics]

SEOUL -- LG Electronics' proposal to split its electric vehicle powertrain business for the establishment of a joint venture with Canada's mobility technology company Magna International requires endorsement at a meeting of shareholders in March. If approved, LG will launch the joint venture based in the western port city of Incheon in July.

The shareholders' meeting is to be held on March 24. In December 2020, LG and Magna agreed to establish the joint venture that would manufacture electric motors (e-motors), inverters and onboard chargers for electric vehicles, along with electric powertrain systems. LG would control 51 percent and Magana 49 percent. LG thinks that independent and quick decisions are the best way to maximize growth potential.

Magna would support the joint venture with its software and systems integration capabilities. LG has beefed up capabilities to manufacture infotainment systems and powertrain parts for international carmakers such as Chevrolet and Jaguar. In 2018, LG acquired ZKW, an Austrian headlamp maker, to develop next-generation headlamps using light-emitting diodes.
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