The Mexico plant of LG Magna e-Powertrain, a joint venture established by LG Electronics and Canadian auto parts maker Magna, accounts for more than 40% of total sales. The Hungary plant is preparing for mass production in Jan. 2027.
On a conference call for second-quarter results held on the 30th, Kim Juyong, executive director and head of management for the Vehicle component Solutions (VS) business at LG Electronics, said, "Since beginning operations in Sept. 2023, the Mexico plant has expanded production continuously and entered a stabilization phase," adding, "It continues to account for more than 40% of total sales, steadily increasing its contribution to improving business performance."
Kim said, "The Hungary plant is a key base responding to European automakers' push to internalize supply chains," adding, "We are preparing steadily with a goal of mass production in Jan. 2027." He added, "We will also pursue new orders leveraging the Eastern Europe production base to secure a high utilization rate from the outset."
LG Magna is expanding its customer base, previously concentrated in North America, to Europe and Asia. Kim said, "We have moved beyond a North America-centered sales structure and actively pursued orders from major automakers in Europe, Asia, and Korea," adding, "Following last year, we also won multiple electric vehicle powertrain projects in the first half of this year from major automakers in Europe and Asia."
Kim said, "We are discussing additional orders in the second half as well, focusing on high value-added product lines," adding, "We will reduce dependence on specific regions and customers to build a stable growth foundation."