P. Sarojini
Mumbai, India (CWBN)_ LG electronics, the multinational electronics company has launched its electric car components business through a new collaboration with the Canadian automotive company Magna International. Apart from the coalition with LG electronics, Magna has also affiliated with Sony for its electric car business which was exhibited at CES 2020. The new business will be renamed as LG Magna e-Powertrains.
In the new joint venture, 49 per cent of the stake valued at $453 million will be purchased by Magna, while the rest will be retained by LG electronics. The new joint venture will manufacture electric motors, inverters, electric drive systems and LG battery heaters in their plants at Incheon, South Korea, and Nanjing, China. Both Magna and Magna’s clients will be served by the new venture.
The US headquarters of Magna’s latest software R&D facility in Michigan will also be incorporated into this new joint venture. While addressing the media, the companies said, “The market for e-motors, inverters and electric-drive systems is expected to have significant growth between now and 2030, and the JV will target this fast-growing global market with a world-class portfolio. LG will help accelerate Magna’s time to market and scale of manufacturing for electrification components, while software and systems integration are competencies that Magna brings to this venture.”
The automotive manufacturers are gradually heading towards the pivot of electric cars as they reflect the future of transport from an economical and durable point of view. But the companies cannot take independent decisions regarding the electronic vehicle, as it is a new venture and technology used in EVs are complicated that it requires the expertise of tech companies like EVs. Hence, many automakers are collaborating to work together.
In recent times, there were news about Apple’s idea for the Apple Car which is expected to be accomplished by 2024, and that Apple had discussions with Magna regarding the development of the vehicle.
