SEOUL, March 24 (Yonhap) – LG Electronics shareholders on Wednesday approved the company’s plan to separate a portion of its electric vehicle (EV) parts business to form a company jointly with Canadian auto parts company Magna International Inc.
Shareholders approved LG’s proposal to separate the electric vehicle transportation business from its auto parts solutions division, in order to create a new company with Magna.
LG will own a 51 percent stake in the new joint venture, which will be tentatively called LG Magna e-Powertrain Co. The rest is owned by Magna International.
The South Korean tech giant announced in December last year that it would form a joint venture with Magna, the world’s third largest auto parts maker, to improve its competitiveness in the mobility sector in the future.
Slated to be launched in July, the new joint venture specializes in manufacturing motors for electric cars and auto parts, such as inverters and on-board chargers.
Bai Du Yong, LG’s CFO who chaired the shareholders’ meeting, said the company aims to achieve “qualitative growth” this year by expanding its core business, such as home appliances, and increasing sales. – End products like OLED TVs.
Bay reiterated that the company is still considering various options for its deficit smartphone business. LG announced in January that its mobile communications division was open to “any possibility”, sparking speculation that the company may close or sell the unit.