General Motors and LG Group have announced plans 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.
“Many solutions for tomorrow’s transportation needs may be available more quickly by building on our partnership strategy,” GM vice chairman Steve Girsky said as quoted by GM's official website.
"Consumers benefit by getting the latest fuel-saving technology faster if we work with the best suppliers and save time and money in the development process.”
The definitive agreement signed Wednesday will help GM expand the number and types of electric vehicles it makes and sells by using LG’s expertise in batteries and other systems.
For LG, the arrangement represents a widening of its portfolio as an automotive solution provider.
The announcement comes days after Ford and Toyota unveiled plans to jointly develop a new hybrid system for light trucks and sports utility vehicles.
Automakers are ramping up their development of alternative technologies ahead of stringent new emissions and fuel economy standards being imposed around the world.
Teams of LG and GM engineers will work on key components, as well as vehicle structures and architecture.
Vehicles resulting from the partnership will be sold in many countries, the company says.
The GM-LG relationship, which began with LG delivering 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 were used as the official vehicles for the G20 summit in Seoul, and are now in a market-testing phase 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, the 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 emissions and fuel consumption regulations around the world, including a recent agreement calling for a US Corporate Average Fuel Economy (CAFE) of 54.5 mpg (23.2km/l) by the end of the 2025 model year. Electric vehicles with no tailpipe emissions and that require no gasoline are expected to play a major role in reaching the CAFE goal.
The 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.
