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| LG CEO Koo Kwang-mo visited the LG Electronics Design Management Center in Seocho-gu, Seoul on the afternoon of the 17th, and is looking at the customer convenience design of the clothing manager installed inside the futuristic connected car. (Provided by LG Electronics) 2020.2.18/News 1 |
LG Group Chairman Koo Kwang-mo is starting to pursue a vision for the future car this year, which is the third year in office.
According to the industry on the 24th, LG Electronics and Magna International, the world’s third-largest auto parts maker headquartered in Canada, and LG Magna e-Powertrain Co. ,Ltd) (tentative name) is established.
LG Electronics held an extraordinary board meeting the day before (23rd) and decided to split the material and establish a joint venture for some of the green businesses in the VS headquarters.
LG Electronics, a spin-off company, will have 100% stake in the new spin-off company through the physical split, and Magna will take over 49% of the spin-off company. The acquisition amount is 453 million dollars (about 501.6 billion won).
The divisions are related to motor/PE (Power Electronics), battery heater, HPDM (High Power Distribution Module), PRA (Power Relay Assembly), DC Charging Box, and battery/battery pack parts. Business, etc.
The joint venture will be officially launched on July 1 when approval for the physical division and establishment of a joint venture is approved at the general shareholders’ meeting scheduled for March next year. The head office is located in Incheon, Korea, and 1,000 employees related to some of the green projects are expected to move to the joint venture.
LG Electronics and Magna expect that the strengths of both companies will create the best synergy and contribute to the advancement of the business of the joint venture in a situation where the eco-friendly vehicle and electrification parts market is growing rapidly. Upon the news of the establishment of a joint venture with Magna, LG Electronics even recorded an upper limit in 12 years.
The industry sees the decision of LG Electronics’ joint venture with Magna as the number of battles for Chairman Kwang-mo Koo who wants to secure food for the future through investment in the electronics business. This is because the entire group’s capabilities are being mobilized to preoccupy the ever-expanding future car market such as electric vehicles as well as autonomous vehicles.
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| On the 23rd, LG Electronics announced that it would establish’LG Magna E-Powertrain Co., Ltd.’ (LG Magna) by dividing part of the’green business’ among the electric vehicle parts business. (Provided by LG Electronics) 2020.12.23/News 1 |
LG Group previously officially launched’LG Energy Solution’ by spun off the battery business of LG Chem, the world’s number one electric vehicle battery company. It is planning to respond in a timely manner to the EV battery market, which is growing rapidly every year by attracting investment funds through spin-off.
LG Energy Solutions has differentiated competitiveness in the field of E-Platform, which provides various services throughout the life of the battery such as battery care, lease, charging, and reuse, contributing to expanding the electric vehicle market and enhancing the social value of batteries. I plan to do it.
In addition, it is also setting up a strategy to continuously secure growth engines by spurring the development of next-generation battery technologies such as the development of solid-state batteries and lithium-sulfur batteries.
Interest is also on whether or not the electronics business (VS division), which has been called LG Electronics”sick finger’, will turn around.
LG Electronics established the VS (Vehicle Components Solutions) business headquarters (then VC business headquarters) in 2013 to nurture the auto parts business as a future growth engine and cash cow, but has been facing a deficit for five years since 2015.
However, in August 2018, immediately after the inauguration of Chairman Kwang-Mo Koo, it acquired ZKW, a premium automotive headlamp company in Austria, for about 1.4 trillion won, and began to expand its business in earnest. It was the largest merger and acquisition in LG Group history. Last year, it transferred and integrated the vehicle lamp business in the VS business division to ZKW.
ZKW possesses the world’s first mass production of premium headlamps equipped with next-generation light sources such as high-brightness LED daytime running lamps and laser headlamps. It is ranked 5th in the world in the premium headlamp market by production volume, and is supplied to premium automakers such as BMW, Benz, Audi, and Porsche.
Starting from the launch of this joint venture, LG Electronics will promote the auto parts business by dividing it into three axes: VS Business Headquarters (focus on infotainment), ZKW (Lamp), and LG Magna e-Powertrain (Powertrain). All of these results are added to the VS division’s consolidated sales and operating profit.
Jin-Yong Kim, Vice President of LG Electronics’ VS Business Division, said, “The joint venture will take advantage of LG Electronics’ outstanding manufacturing technology, Magna’s rich experience, and global customer network to lead the upcoming electric vehicle era and enhance the competitiveness of both companies Will be,” he emphasized.
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| LG Twin Tower in Yeouido, Seoul. 2020.10.12/News1 © News1 Reporter Eunna Ahn |