LG Electronics’ joint venture with Magna International has inaugurated on Thursday.
The pair’s respective boards approved the split off and named the CEO and executives of LG Magna e-Powertrain.
The first CEO will be Jung Won-seok, who previous was the head of of green business of LG Electronics’ vehicle solution (VS) business.
Jung joined Daewoo Motors in 1993. He joined LG CNS in 2001 and oversaw sales, strategy and planning at the IT service provider. He joined LG Electronics’ VS business in 2018.
LG said the joint venture will hold its own board meeting to name Jung as CEO as well as other executives. A LG personnel will also be named CFO of LG Magna e-Powetrain. A Magna executive will be named COO.
In December, LG announced that it will split off part of its VS business. Motor, power electronics, power heater, DC charging box, battery pack components and other e-powertrain related operations would be split off as power of the joint venture with Magna, the company had said.
LG Electronics currently wholly owns LG Magna e-Powertrain but Magna will acquire a 49% stake in the company next year.
Magna currently offers car components to General Motors, BMW, Ford, Daimler, Volkswagen, Honda and others.
South Korean analysts expect the joint venture to record high growth in the coming years from high demand for e-powertrain components.
Eugene Investment said it expects LG Electronics’ VS business, which includes the joint venture, to record 7.1 trillion won in sales this year and 9 trillion won in 2022.
A total of 1,100 LG employees has joined the new joint venture.