GM to Develop Electric Vehicles Together With LG
While for LG this means an opportunity to widen its portfolio as an automotive solution provider, GM aims at expanding the number and types of electric vehicles it makes and sells.
“Many solutions for tomorrow’s transportation needs may be available more quickly by building on our partnership strategy,” said GM Vice Chairman Steve Girsky. ”Consumers benefit by getting the latest fuel-saving technology faster if we work with the best suppliers and we save time and money in the development process.”
Teams of LG and GM engineers will work on key components, as well as vehicle structures and architectures. Vehicles resulting from the partnership will be sold in many countries.
“This is a strategic development for LG and we fully support GM’s goal to lead the industry in the electrification of the automobile,” said Juno Cho, president and chief operating officer of LG Corp.
Timing of the launch of the first vehicles resulting from the partnership will be announced closer to market readiness. The agreement does not involve an exchange of equity between the companies.
The decision came as more stringent emission and fuel consumption regulations around the world, are to be implemented soon, including the recent agreement calling for a U.S. Corporate Average Fuel Economy (CAFE) of 54.5 mpg (4.3 l/100km) by the end of the 2025 model year.