You may remember that a few months ago LG announced it would be closing the doors on its smartphone department. Its phones will still be on shelves for a little longer, but they’ll all be gone soon enough. Cutting its losses and looking to re-bolster its revenue, the South Korean consumer tech giant is now getting in on the EV game.
LG and EVs? Sounds good to me.
Now, don’t start jumping to conclusions just yet. Unlike Xiaomi, this manufacturer isn’t going to be making its own cars. Instead it’s playing to its strengths and will be building auto parts specifically for electric vehicles.
LG is pairing up with Magna International, a Canadian auto parts supplier that serves big names like BMW, Ford, and General Motors. The Next Web reports that the tech manufacturer has taken a healthy 51% stake in Magna International, so it’s clearly in it for the long haul.
The pair’s couple name is ‘LG Magna e-Powertrain’, which is a bit of a mouthful but we won’t judge. They’re setting up shop first in Incheon, South Korea, with plans to open more bases in Nanjing, China and Michigan, US.
In a press release, Magna explained that the joint venture is looking to take advantage of Magna’s, “…strength in electric powertrain systems and world class automotive manufacturing,” and LG’s, “…expertise in component development for e-motors and inverters.”
“By combining our strengths, we expect to gain investment efficiency and speed to market with synergies to achieve more, all while continuing to capitalize on the acceleration of the electrified powertrain market,” said President of the LG Electronics Vehicle Solutions Company, Dr. Kim Jin-yong.
Bon courage to both companies. Hopefully this takes off better than The Wing did.