LG, Troubled Electric Vehicle Business... Aiming for Profit Turnaround

LG Electronics' P-OLED-based 'Digital Cockpit (instrument cluster)' installed in Cadillac, the luxury car brand of General Motors (GM) in the United States

[Asia Economy Reporter Dongwoo Lee] LG is accelerating its drive into the automotive electronics business, a future core sector. In line with automakers' shift to eco-friendly vehicles, the company aims to achieve profitability next year through active investment and development.

According to industry sources on the 3rd, LG Electronics recently showcased the electric vehicle Ioniq concept cabin in collaboration with Hyundai Motor Company. LG Electronics modularized home appliances and installed them inside the vehicle.

They introduced shoe care that keeps wet or dirty shoes in a comfortable state, a capsule coffee machine for easy coffee making, a clothing care system that helps keep clothes wrinkle-free, and a minibar with refrigeration functionality.

The ceiling was equipped with a flexible OLED display that allows screen splitting so two people can watch different content simultaneously. Speakers installed in the seat headrests create a personal sound zone, enabling each occupant to hear clearly without being disturbed by surrounding noises.

When exiting the vehicle, UV LED lighting and a floor-cleaning robot operate to maintain interior cleanliness. The UV LED lights installed on the ceiling sterilize the interior, while the bar-shaped floor robot installed on the floor sucks up dust and cleans the floor thoroughly.

LG Display is increasing its market share by supplying P-OLED (Plastic Organic Light Emitting Diode) to global automakers for the first time this year.

In the second half of this year, LG Display will equip the 2021 Mercedes-Benz S-Class with P-OLED. This follows the supply of a 38-inch P-OLED to the American premium car brand Cadillac in February. The industry expects P-OLED to be mainly used in next-generation smartphones and electric vehicles due to its high design freedom and lightweight properties.

The interior view of the 'Ioniq Concept Cabin,' showcasing the future car interior vision revealed by LG Electronics and Hyundai Motor Company.

According to market research firm Omdia, LG Display ranked first last year in the global automotive display market with a 20% share (based on sales).

LG Technology Ventures, a corporate venture capital (CVC) under LG Group, recently invested a total of $23 million in Israeli venture company Aurora Labs alongside Porsche and Toyota. Aurora Labs, founded in 2016 in Tel Aviv, Israel, specializes in vehicle self-healing software.

The company is known to possess essential technology for maintaining software up-to-date and protecting against bugs and hacking, which is crucial for ensuring the safety of future autonomous vehicles.

KB Securities forecasted that the order backlog for automotive components this year is likely to exceed 60 trillion won, a 13% increase from the previous year. From the fourth quarter of this year, European and North American automakers are preparing to launch numerous new electric vehicle models, leading to an increasing trend of turnkey orders for LG Electronics, a total solution supplier of electric vehicle parts.

Considering that revenue recognition for previously low-priced automotive components will end after the fourth quarter of this year, the possibility of the automotive electronics division turning profitable from the second quarter of next year is expected to increase.

This content was produced with the assistance of AI translation services.