LG Electronics to Spin off Auto Parts Designing Unit

LG Electronics Inc. is spinning off its vehicle electrical component designing unit, which is the control tower of its automotive electronics business division.

In 2013, LG Electronics launched the automotive electronics business division by putting together the designing unit, the car unit which produces automotive infotainment components, and the energy component unit which develops electric vehicle motors, inverters and compressors. However, the business division has recorded large-scale losses for years, failing to turn into a profitable entity.

Sales of the business division increased dramatically from 1.83 trillion won (US$1.55 billion) in 2015 to 4.29 trillion won (US$3.62 billion) in 2018. However, its operating losses increased from 76.70 billion won (US$64.70 million) in 2016, 106.90 billion won (US$90.17 million) in 2017 and 119.80 billion won (US$101.05 million) in 2018.

Accordingly, LG Electronics seems to be restructuring the auto electronics business division to strengthen its competitiveness and reduce losses.