South Korea's LG Electronics will spin off its electric car parts business into a new joint venture worth nearly $1 billion with Canada’s automotive supplier Magna International as the global automobile industry phases out conventional combustion engine vehicles and switches to electrification.
The joint venture, tentatively called LG Magna e-Powertrain, will manufacture e-motors, inverters, on-board chargers and electric-drive systems.
“The market for e-motors, inverters and electric-drive systems is expected to have significant growth between now and 2030, and the joint venture will target this fast-growing global market with a world-class portfolio,” the companies said in a joint statement on Wednesday.
Magna will buy a 49 per cent stake in the new unit for 501.6 billion won ($453 million) while the remainder will be owned by LG Electronics, the South Korean company said in an exchange filing.
LG will help accelerate Magna’s time to market and scale of manufacturing for electrification components, while Magna will bring its skills in software and systems integration to the venture, according to the statement.
“By combining our strengths, we expect to gain investment efficiency and speed to market with synergies to achieve more, all while continuing to capitalise on the acceleration of the electrified powertrain market,” Swamy Kotagiri, president and chief executive of Magna, said.
Automotive suppliers globally are increasingly positioning themselves to benefit from the growth in electric cars. Reports this week said that Apple aims to produce its first electric car by 2024 and will use its own breakthrough battery technology.
LG has experience in the development of electric vehicle components for models such as the Chevrolet Bolt EV and Jaguar I-Pace. Founded in 1957, Magna was the world’s third-largest supplier of powertrains, chassis and other various parts by revenue last year.
By combining our strengths, we expect to gain investment efficiency and speed to market with synergies to achieve more
The new company will service orders from Magna and its clients. Electric vehicle components to be used include LG Electronics’ battery heater unit and its power relay assembly division, the statement added.
“Manufacturers need to be disruptive to maintain leadership positions in electrification and, through this deal, LG is entering a new phase in its automotive components business, a growth opportunity with enormous potential,” Kim Jin-yong, president of the LG electronics vehicle component Solutions Company, said.
LG Magna e-Powertrain will have more than 1,000 employees across locations in the US, South Korea and China.
The venture will also have a software R&D centre in Michigan, where Magna’s US headquarters is located, according to Bloomberg.
The transaction is expected to close in July, subject to obtaining LG shareholder approval.
The tie-up is LG Electronics’ second major investment in the industry after it bought automotive-lighting and headlight-systems provider ZKW Group in 2018 for €1.1bn ($1.3bn).
The five pillars of Islam
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
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Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
Killing of Qassem Suleimani
Killing of Qassem Suleimani
Killing of Qassem Suleimani
The Voice of Hind Rajab
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Director: Kaouther Ben Hania
Rating: 4/5
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
Quick facts on cancer
- Cancer is the second-leading cause of death worldwide, after cardiovascular diseases
- About one in five men and one in six women will develop cancer in their lifetime
- By 2040, global cancer cases are on track to reach 30 million
- 70 per cent of cancer deaths occur in low and middle-income countries
- This rate is expected to increase to 75 per cent by 2030
- At least one third of common cancers are preventable
- Genetic mutations play a role in 5 per cent to 10 per cent of cancers
- Up to 3.7 million lives could be saved annually by implementing the right health
strategies
- The total annual economic cost of cancer is $1.16 trillion
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
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Engine: Long-range single or dual motor with 200kW or 400kW battery
Transmission: Single-speed automatic
Max touring range: 620km / 590km
Price: From Dh250,000 (estimated)
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- Bhiwadi, India
- Ghaziabad, India
- Hotan, China
- Delhi, India
- Jaunpur, India
- Faisalabad, Pakistan
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- Bahawalpur, Pakistan
- Peshawar, Pakistan
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Toss India, chose to bat
India 281-7 in 50 ov (Pandya 83, Dhoni 79; Coulter-Nile 3-44)
Australia 137-9 in 21 ov (Maxwell 39, Warner 25; Chahal 3-30)
India won by 26 runs on Duckworth-Lewis Method
if you go
New schools in Dubai
Killing of Qassem Suleimani
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
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Zayed Sustainability Prize
The biog
Mission to Seafarers is one of the largest port-based welfare operators in the world.
It provided services to around 200 ports across 50 countries.
They also provide port chaplains to help them deliver professional welfare services.
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Evacuations to France hit by controversy
- Over 500 Gazans have been evacuated to France since November 2023
- Evacuations were paused after a student already in France posted anti-Semitic content and was subsequently expelled to Qatar
- The Foreign Ministry launched a review to determine how authorities failed to detect the posts before her entry
- Artists and researchers fall under a programme called Pause that began in 2017
- It has benefited more than 700 people from 44 countries, including Syria, Turkey, Iran, and Sudan
- Since the start of the Gaza war, it has also included 45 Gazan beneficiaries
- Unlike students, they are allowed to bring their families to France
