Friday, August 26, 2011 3:56 PM
LG and GM team up on EV project
SEOUL: LG Corp and General Motors have signed a strategic alliance deal to jointly develop high-performance electric cars, the South Korean company said Friday.
The agreement signed in Detroit on Thursday aims to use LG's proven car battery system to develop a variety of eco-friendly, electricity-powered vehicles, said LG, the holding company of South Korea's fourth-largest conglomerate LG Group.
LG and GM, in addition, plan to work together in the building of parts for the new cars and share responsibility for global sales, reports Yonhap news agency.
The South Korean company said the deal highlights LG's commitment to supporting GM's plan to make electric cars of the future.
GM has said that it wants to make more electric vehicle models as carmakers around the world scramble to meet consumer and regulatory demands for energy efficient cars that do not emit carbon dioxide into the atmosphere.
The two companies, however, did not exchange shares.
LG already supplies lithium-ion battery packs for plug-in hybrids made by GM affiliates such as Chevrolet and Opel.
It has also engaged in the development of an electric power model of the best-selling Cruze compact sedan, which is currently being tested on a South Korean test track to learn about its capabilities.