LG, GM join hands to build electric cars
Joint efforts to put more eco-friendly vehicles on the road
LG Corp. and U.S. automaker General Motors signed a deal to jointly build next-generation electric cars to strengthen their partnership amid the growing demand for eco-friendly vehicles, the Seoul-based company said Friday.
The agreement was inked in Detroit on Thursday, with the two companies agreeing to develop all the core components and solutions involved in next-generation electric cars that GM will be manufacturing.
“The agreement between LG and GM is strategically important for the future of our company, and LG will do its best to support GM’s electric car business,” said Cho Juno, president and CEO of LG Corp.
LG Corp. CEO Cho Juno (right) poses with GM CEO Dan Akerson after signing a strategic alliance to jointly develop high-performance electric cars in Detroit on Thursday. (Yonhap News)
Steve Girsky, vice chairman of GM said the combined efforts between such top tier enterprises will offer consumers a chance to drive eco-friendly vehicles built with the most up-to-date technology.
The details need to be further ironed out, but LG said it would be mostly be involved in battery systems, while GM handles electric motor systems and the overall design of the cars.
LG and GM have been forging closer ties since LG Chem, an LG affiliate, began to exclusively supply lithium-ion batteries for GM’s Chevrolet Volt in the latter half of 2010.
A total of four LG affiliates ― LG Chem, LG Electronics, LG Innotek and V-ENS ― will be participating in this latest venture.
The demand for environmentally-friendly cars has spiraled as more countries across the world are stepping up their guidelines to help reduce greenhouse gas emissions.
The U.S. and Europe are leading the global campaign for hybrid and eco-friendly cars by avidly pushing for higher fuel standards.
The U.S. government in July said it now has a deal with 13 automakers to increase fuel efficiency to 24 km per liter for all cars and light-duty trucks by 2025.