Magna's CEO made a simple comment about willing to work with Apple on an Electric Car and the stock market reacted immediately
Last week LG Electronics announced that it will establish LG Magna e-Powertrain by splitting off some of its green business units in the Parts Business Division. The business units to be split off include motors/power electronics (PE), battery heater, high power distribution module (HPDM), power relay assembly (PRA), DC charging box, and battery and battery pack components.
Where the news went off script, likely intentionally, is when Magna International CEO Swamy Kotagiri said at a recent automotive association event that his company is ready to produce Apple's electric vehicles. He added that his company is willing to expand its manufacturing plant, if it is necessary to work with Apple.
It was rumored last month that Magna could possibly be one of Apple's future car manufacturing partners.
When Kia was in the news as a possible Apple Car partner, their stock price soared. In the end, however, a Kia regulatory filing admitted that they weren't in talks with Apple. Yet the stock price remained higher.
The news of a simple quote from Magna's CEO sent LG's stock up 8% yesterday on the Korean stock exchange. The stock market clearly senses that Apple's Project Titan will one day be a blockbuster market event and their index fingers are itching to hit the buy button. For more on this story, read the full BusinessKorea report.