Magna Signs Joint Venture Agreement With LG Electronics Focussed On Powertrain Components - Magna International (NYSE:MGA)

Magna International Inc MGA has signed a joint venture agreement with LG Electronics Inc to form a new company called LG Magna e-Powertrain.
The new JV company will have its headquarters in Incheon, South Korea.
The new company will develop powertrain components that offer automakers a scalable portfolio, from complete solutions enabling electrification and integrating intelligent operating software and controls in new e-drive systems.
The joint venture aims to bring Magna's strength in electric powertrain systems and automotive manufacturing, with LG's expertise in component development for e-motors and inverters.
CEO of the new company is Cheong Won-suk, who was most recently vice president and head of the LG Vehicle Component Solutions.
Javier Perez, who has been with Magna since 2016, will be the new company's COO.
The companies expect LG Magna e-Powertrain to capitalize on the growing global shift toward vehicle electrification.
The new company will have more than 1,000 employees in the United States, South Korea, and China.
"The market for e-motors, inverters, and electric drive systems is expected to have significant growth between now and 2030. Our joint venture company brings together experts from Magna and LG to deliver a world-class portfolio of electric solutions," said new company COO Javier Perez.
Price action: MGA shares closed lower by 0.86% at $81.03 on Tuesday.