Expanding Partnership
According to auto industry sources on November 29, LG Electronics’ vehicle components (VC) division has been developing the automotive telematics components for the U.K.-based luxury automaker Jaguar Landrover over the last two years and the parts will be used in new car models of Jaguar to be released next year or the year after next. Telematics is a core component of smart cars that can send both data and communications back and forth between vehicles, and LG Electronics has the highest global market share with nearly 30 percent,
Not only LG Electronics but also LG Chem are expanding the partnerships with Jaguar. Jaguar Landrover recently unveiled its first electric vehicle (EV) concept, I-Pace, and the model is to be equipped with LG Chem’s lithium-ion battery. With a 90kWh battery pack on the bottom of the car body, the I-Pace Concept can offer a range up to 220 miles (354 kilometers) on a single charge. The all-electric concept SUV model is expected to be launched by the second half of 2018.
The strong partnerships between LG and Jaguar is one of the examples that information technology firms and automakers cooperate in order to take the leadership in the EV and smart car market. LG, which seeks out a new growth engine in the business to business (B2B) sector, including vehicle components, has been already manufacturing various products including automotive air conditioning systems, navigation systems, display panels, motors and materials as well as telematics. LG Group affiliates, such as LG Electronics, LG Display, LG Chem, LG Innotek and LG Hausys, are expected to record a total of 6 trillion won (US$5.12 billion) of sales related to cars by the end of this year.
LG Group Chairman Koo Bon-moo is also joining the forces to transform the group. Koo and his younger brother, LG Group Vice Chairman Koo Bon-joon who lead the group's next growth engine businesses, had a meeting with Cyrus Mistry, chairman of India’s Tata Group which is a holding company of Jaguar Landrover, in September 2014. After the meeting, LG Electronics’ vehicle components division obtained a component supply contract from Tata Motors.