An agreement was signed last Wednesday by General Motors Co. CEO Dan Akerson and LG Group President Juno Cho for the development of electric vehicles. A GM statement revealed that the deal will “help GM expand the number and types of electric vehicles it makes and sells.”
This trend appears to be catching on as earlier in the week, Toyota Motor Corp. and Ford Motor Co. said they are partnering to build hybrid light trucks.
Automakers are partnering with other companies to help in the development of cars that more fuel-efficient as U.S. regulators intend to implement more stringent fuel-economy regulations later this decade.
LG Group has been supplying the battery cells for the Chevrolet Volt plug-in hybrid. Akerson, who has pledged to stay ahead of its rivals on vehicle electrification, is urging his team to cut the Volt’s price, partly due to economies of scale by using this technology on more GM vehicles.
GM had announced earlier that an upcoming Cadillac sedan will use the Volt powertrain. GM said that the formal alliance with LG came as the result of the success of the Volt. GM and LG had collaborated last year to create a demonstration fleet of electric Chevy Cruze compacts, which were the official vehicles used in the G20 summit in Seoul.
According to GM’s statement, those vehicles are now being market-tested. GM said that the engineers of the two companies will cooperate to develop electric vehicle platforms and components. GM said further that the vehicles built from this partnership will be offered in “many countries.”