LG Electronics’ Stock Price Soars on Magna CEO’s Remark on Apple Cars

LG Electronics’ joint venture with Canada’s Magna International is likely to become a major parts supplier for Apple’s car project.

LG Electronics announced on March 23 that it will establish LG Magna e-Powertrain by splitting off some of its green business units in the Parts Business Division. The business units to be split off include motors/power electronics (PE), battery heater, high power distribution module (HPDM), power relay assembly (PRA), DC charging box, and battery and battery pack components.

According to foreign news outlets Magna International CEO Swamy Kotagiri said at a recent automotive analyst association event that his company is ready to produce Apple’s electric vehicles. He said his company is willing to expand its manufacturing plant, if it is necessary to work with Apple. Magna has been regarded as an Apple car partner.

Earlier, at the end of 2020, LG Electronics announced the establishment of LG Magna e-Powertrain, a joint venture with Magna. To this end, it split off the powertrain unit from the Vehicle Solutions (VS) Business Headquarters on March 24. Industry insiders are predicting that LG Magnai e-Powertrain will become a major parts manufacturer for Apple cars.

Stock market analysts say that LG Electronics has secured the VS Business Division’s future growth potential through the joint venture with Magna. They expect the joint venture to turn a profit three years after launch, with its value properly evaluated after its sales reach one trillion won.

LG Electronics’ stock price jumped on the news of Magna’s announcement of its will to produce Apple cars. On March 30, LG Electronics closed at 152,000 won, up 11,500 won (8.19 percent) from the previous day. It once reached 153,000 won.