LG's Aggressive Expansion in Automotive Electronics... Rising Expectations for 'Apple Car' Collaboration

Recent Executive Appointments See Major Promotions in Electric Vehicle Division
First Ever Annual Profit Expected This Year
Excitement Grows Over Apple Car Order Prospects

Expected appearance of the Apple Car.
Photo by AppleHub Instagram

[Asia Economy Reporter Han Yeju] LG Group is making aggressive moves in the future automotive business. As the automotive components (VS) business, expected to turn profitable for the first time this year, draws attention as a potential key to LG's performance, the possibility of securing Apple Car orders is also resurfacing. LG has been considered a strong candidate among Apple Car partners, as the group has affiliates involved in electric vehicle production.

According to industry sources on the 29th, LG Group promoted executives in the automotive components (VS) business division through its 2023 executive personnel reshuffle. This move places key talents in the field at the forefront, preparing for the future. Recently, as the profitability of VS businesses such as LG Electronics and LG Innotek has improved, this reflects LG Group's determination to accelerate the pace of turning a profit.

LG Electronics' VS Business Division recorded an operating profit of 50 billion KRW in the second quarter of this year, achieving profitability for the first time in 26 quarters, and posted the highest quarterly sales ever in the third quarter. Industry insiders expect the VS Business Division to record an annual operating profit of 200 billion KRW this year, potentially achieving an annual profit for the first time in history. The order backlog for the VS business, initially estimated at about 65 trillion KRW by the end of this year, is expected to exceed 80 trillion KRW due to increased new orders in the third and fourth quarters and the effect of exchange rate fluctuations.

Researcher Kim Dongwon of KB Securities evaluated, "LG Electronics and LG Innotek's automotive components business is transforming from a weak point into a performance driver for LG Group."

This analysis is gaining more traction as expectations grow that LG Electronics' VS business division will participate in Apple Car development. Recently, there have been reports that Apple has reorganized its Apple Car task force (TF).

Researcher Kim said, "If Apple plans to launch the Apple Car in 2025?2026, it will likely start building its parts supply chain from next year," adding, "Apple is highly likely to collaborate with LG Group, which has secured the entire lineup of core electric vehicle components through LG Electronics, LG Innotek, LG Display, and LG Energy Solution." LG Group has also been mentioned as a strong partner for Apple Car due to its history of supplying various components for Apple's IT devices.

Meanwhile, U.S. investment firm Bernstein analyzed that if Apple launches its own electric vehicle by 2025, it could sell 1.5 million units by 2030.

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