LG Magna e-Powertrain, a joint venture between LG Electronics and Magna International, is planning workforce reductions to address a slowdown in electric vehicle (EV) demand and a potential loss of EV subsidies in the United States under President-elect Donald Trump’s second term.
According to industry sources, LG Magna will implement reductions in various business units, which include drive motors, chargers, and inverters. “While it may vary by unit, some units could see reductions of up to 20-30%,” explained an LG Magna representative. This follows a workforce reduction in June, with affected employees reassigned to other LG affiliates.
Sales for LG Magna have declined sharply this year, from 499.5 billion won in the first half of 2023 to 227.4 billion won in 2024. Despite a growing order backlog, some products, like the EV9 motor sold to Hyundai, are reported to have minimal profit margins. An LG Electronics representative noted, “Various measures are being considered regarding LG Magna’s workforce reduction, but no specific plan has been finalized yet.”
The reduction also responds to Trump’s stance on eco-friendly policies, including potential cuts to EV subsidies. “If Trump’s policies hinder EV sales in the U.S., it could negatively impact LG Magna’s sales flow,” a source said, noting the company’s reliance on American clients like General Motors (GM).
Source: Businesskorea
