After a joint venture between General Motors Co. and South Korea’s LG Crop., both companies will produce a new battery-powered vehicle that will take less time for manufacturing as well aim to provide the vehicle at a cost-effective price to the customers. This deal will pave a new path where one can look for a fresh pairing between an automaker and an electronics giant.
LG will cover half the cost of producing a future electric and hybrid vehicle. It will provide all essential articles that GM will require in manufacturing a vehicle. At present, the company supplies lithium-ion battery cells to GM’s Opel Ampera and Chevrolet Volt battery-powered cars. According to the joint agreement, the electronics giant will make available everything from on-board battery chargers to climate-control along with vehicle entertainment systems.
General Motors Co. hopes for future growth by such a wonderful deal where both companies can work together to push other automakers on the rear seats. This agreement is a matchless combination where one can look for unpredictable growth and ever-growing demand for electric and hybrid vehicles. These vehicles will be manufactured in keeping mind fuel prices, development costs and changing consumer trends.
Steven Girsky, the GM Vice Chairman pointed out that he doesn’t know what would be the advantage of the deal, but this is a way to save the company from risks. LG will be able to sell technologies created with GM. Hence, this will broaden the company’s role in the global automotive industry.
Juno Cho, president and chief operating officer of LG Corp. said that the joint venture is a tactical development for LG. This deal will offer a new path to GM where the company can achieve a goal for the electrification of the automobile.
After the announcement by the Obama administration, all automakers are trying hard to produce vehicles that can make up an average fuel economy to 54.5 miles a gallon by 2025. Hence, many companies are looking for magic tricks that can help them meet the requirements.
GM has planned a different aspect to achieve the goals. Along with a partnership with other automakers and several companies, the company is trying to enhance the in-house production. Mr. Girsky said that the electronics industry has to face much quicker alteration than automakers. The company has to learn plenty of things from its co-partner LG Crop.