General Motors (News - Alert) and the LG Group agreed this week to jointly design and engineer future electric vehicles, expanding a relationship built on LG’s work as the battery cell supplier for the Chevrolet Volt and Opel Ampera extended-range EVs.
The pact represented the second major alliance of the month – coming shortly after the announcement by Ford Motor Company and Toyota Motor Corporation that they will jointly develop a new advanced hybrid system for light truck and SUVs.
The definitive agreement signed August 24 will help the U.S. automaker to expand the number and types of electric vehicles it offers by using the South Korea-based electronics company’s proven expertise in batteries and other systems. For LG, the arrangement represents an opportunity to scale up its portfolio as an automotive solution provider.
“Many solutions for tomorrow’s transportation needs may be available more quickly by building on our partnership strategy,” said General Motors 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.”
The GM-LG relationship that began with LG delivering the cells for the battery pack of the Chevrolet Volt and Opel Ampera expanded last year with work on a demonstration fleet of Chevrolet Cruze electric vehicles. These vehicles, which were used as official vehicles of the 2010 G20 summit in Seoul, are now in the phase of market-testing to learn more about capabilities and requirements.
Going forward, teams of LG and GM engineers will work on key vehicle components, as well as 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 CEO of LG Corp.
The partners noted that accelerating the pace of roadworthy technology is more important than ever since the announcement of a number of more stringent emission and fuel consumption regulations around the world, including the recent agreement calling for a U.S. Corporate Average Fuel Economy (CAFE) of 54.5 mpg (23.2km/l) by the end of the 2025 model year. Electric vehicles, which have no tailpipe emissions and require no gasoline, are expected to play a major role in reaching the CAFE goal.
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.
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Cheryl Kaften is an accomplished communicator who has written for consumer and corporate audiences. She has worked extensively for MasterCard (News - Alert) Worldwide, Philip Morris USA (Altria), and KPMG, and has consulted for Estee Lauder and the Philadelphia Inquirer Newspapers. To read more of her articles, please visit her columnist page.Edited by
Jennifer Russell
