LG Electronics-Magna Complete Stock Trading Procedures... Launch of LG Magna e-Powertrain

Exterior view of LG Magna e-Powertrain headquarters located in Incheon Metropolitan City

[Asia Economy Reporter Kim Hyewon] On the 28th, LG Electronics and Magna International, the world's third-largest automotive parts manufacturer, completed the stock transaction procedures for 'LG Magna e-Powertrain.'

LG Electronics established LG Magna e-Powertrain, a 100% subsidiary, on the 1st by physically splitting off its electric vehicle powertrain-related business, and on the same day sold 49% of the company's shares to Magna. Magna invested approximately $453 million (about 521.3 billion KRW) to acquire the stake.

With this, the stock transaction procedures for the joint venture between LG Electronics and Magna have been completed. LG Electronics holds 51% of the joint venture's shares.

LG Magna e-Powertrain researches, develops, manufactures, and sells components that make up electric vehicle powertrains (power transmission devices) such as motors and inverters, driving systems (modularized forms of motors, inverters, and reducers), and vehicle-mounted chargers.

The joint venture's headquarters is located in Incheon Metropolitan City. Its subsidiaries include LG Magna e-Powertrain USA in Michigan, USA, and LG Magna e-Powertrain Nanjing in China.

LG Magna e-Powertrain held its inaugural general meeting on the 1st of this month and appointed Executive Director Jeong Wonseok, who had been in charge of the electric vehicle powertrain business at LG Electronics' VS Business Division, as CEO.

The joint venture plans to appoint key executives at the board meeting scheduled for next month. Javier Perez, Vice President at Magna who oversaw product manufacturing and quality control in the Asia region, has been nominated as Chief Operating Officer (COO).

With the launch of this joint venture, LG Electronics has reorganized its three pillars of the automotive electronics business: infotainment (VS Business Division), automotive lighting (ZKW), and electric vehicle powertrain (LG Magna e-Powertrain).