In a move that The General says will "expand the numbers and types of electric vehicles it sells," the agreement announced today has GM and LG jointly designing and engineering future electric vehicles. General Motors vice-chairman Steve Girsky says the deal with LG means that tomorrow's transportation needs "may be available more quickly."
The automaker says that teams of LG and GM engineers will work on key components and platforms and even states that vehicles resulting from the pairing will be "sold in many countries." It's notable that this agreement, according to GM, does "not involve an exchange of equity between the companies."
The press release closes with this non-specific disclaimer: "Timing of the launch of the first vehicles resulting from the partnership will be announced closer to market readiness." In other words: don't hold your breath just yet.
DETROIT – General Motors and LG Group will 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 definitive agreement signed Wednesday will help GM expand the number and types of electric vehicles it makes and sells by using LG's proven expertise in batteries and other systems. For LG, the arrangement represents a widening of 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 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."
The success of the extended-range propulsion system in the Volt and Ampera led to exploring other collaborations in the electrification of the automobile. 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.
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 were used as official vehicles of the G20 summit in Seoul are now in the phase of market-testing to learn more about capabilities and requirements.
"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.
Accelerating the pace of roadworthy technology is more important than ever with 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.
About General Motors – General Motors (NYSE:GM, TSX: GMM), one of the world's largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 208,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners produce cars and trucks in 30 countries, and sell and service these vehicles through the following brands: Baojun, Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall, and Wuling. The global Chevrolet brand celebrates its 100th anniversary in 2011. GM's largest national market is China, followed by the United States, Brazil, the United Kingdom, Germany, Canada, and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on the new General Motors can be found at www.gm.com.
About LG – LG is a leading global business group with business activities focused in the three key areas of Electronics, Chemicals, Telecommunications & Services. As one of the largest conglomerate in Korea LG has a 64-year history since its establishment in 1947. It made a transition into a holding company system in 2003 to improve business transparency and develop its management system. Now LG has 57 subsidiaries such as LG Electronics, LG Chem and LG Display under a single holding company LG Corp. with workforce of 210,000 in more than 80 countries. The consolidated revenue marked about KRW 141 trillion and exports marked USD 52.7 billion in 2010. More information can be found at www.lg.com.