[Concall] LG Electronics "Automotive Order Backlog to Reach 100 Trillion KRW by Year-End... Investment Expansion Underway"

LG Electronics posted an operating loss of 61.2 billion KRW in the second quarter in its VS Business Division, which operates the automotive electronics business, due to one-time expenses. However, with the current order backlog exceeding 80 trillion KRW, the company expects to secure an order backlog of 100 trillion KRW by the end of the year.

On the 27th, during a conference call following the announcement of the second-quarter earnings, LG Electronics was asked about the order backlog of the VS Business Division. The company stated, "We have currently secured an order backlog of over 80 trillion KRW, and it is expected to approach 100 trillion KRW by the end of the year." Regarding the composition of the order backlog, it explained, "Infotainment accounts for 60%, while electric vehicle parts and lamp segments make up 40%." It added, "Considering the rapid electrification and electronic integration trends in automobiles, the order backlog of the VS Business Division is expected to continue increasing."

LG Electronics plans to actively explore new opportunities in future mobility areas such as autonomous driving, software (SW) solutions, and content in response to trends like vehicle electrification and connected services. At the same time, it aims to sustain growth based on a portfolio centered on three main pillars: vehicle infotainment, e-powertrain, and lamps.

Regarding the possibility of additional investments in the automotive electronics business, the company stated, "We plan to continue expanding production sites to respond to the increasing order backlog and regional production demands."

LG Electronics explained, "For the smart business, a new production site is being established in Mexico to respond to the North American region, and expansion investments are also planned for the existing sites in Vietnam and Poland." It continued, "LG Magma's Mexico plant will soon begin operations to strengthen the North American region in addition to the existing plants in Korea and China, and continuous investments will be made." It also mentioned that "a new plant is being established to respond to the European region."

Furthermore, it added, "LG Magma's Mexico plant will start mass production from September, focusing on parts production for GM's new electric vehicle platform order project. However, it also expects to expand supply to meet the increasing order volumes from GM's major OEMs and Asian OEMs aiming to sell electric vehicles in the North American market." Regarding the possibility of LG Magma turning profitable, the company responded, "We expect to achieve profitability on an annual basis."

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