General Motors, LG to Co-Develop Electric Cars

General Motors and LG Corp. said Thursday that the companies would co-develop electric cars, an unusual pairing of an electronics maker and an automaker.

Teams of LG and GM engineers will work on key components, as well as vehicle structures and architectures, the companies said. The partnership evolved from the two companies' work on the all-electric Chevy Volt and the Opel Ampera for Europe. Within that, LG developed the cells for the battery pack of the Chevrolet Volt, GM said.

"Many solutions for tomorrow's transportation needs may be available more quickly by building on our partnership strategy," said GM vice chairman Steve Girsky, in a statement. "Consumers benefit by getting the latest fuel-saving technology faster if we work with the best suppliers and we save time and money in the development process."

Both companies did not say which vehicles would be co-developed under the agreement, or when they would be sold. The arrangement does not include equity being swapped between the companies, GM and LG said.

"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, president and chief operating officer of LG Corp., in a statement.

GM said that part of the reason for the partnership were recent requirements that will see the U.S. Corporate Average Fuel Economy (CAFE) raised to 54.5 mpg (23.2km/l) by the end of the 2025 model year.

The GM-LG partnership is the second high-profile collaboration announced this week. Ford and Toyota also signed a memorandum of understanding that will see the two automotive giants join forces to develop new hybrid technology for light trucks and SUVs.

The agreement, a formal version of which is expected to be drafted next year, will be based on a hybrid powertrain for rear-wheel drive trucks. Both Ford and Toyota have been working on the tech already, but will now share their current knowledge as they co-develop new tech that's expected to be used in production sometime over the next 10 years.