To Improve Profitability
LG Electronics has begun to reorganize its money-losing automotive electronics business.
The company announced on Jan. 28 that it transferred the automotive lamp business of the Vehicle Solution (VS) Division to ZKW, an Austrian vehicle lighting company it acquired in 2018.
After the reorganization, the VS Division will focus on autonomous driving technologies such as infotainment and sensors, advanced driver assistance systems, and electric vehicle-related products such as motors and software. ZKW, which has inherited all of the automotive lamp business from LG Electronics, is expected to speed up its penetration of the Asian market.
LG Electronics' sales in the automotive electronics business grew from 3.34 trillion won in 2017 to 4.29 trillion won in 2018, and an estimated 5.60 trillion won in 2019, but operating losses increased from 106.9 billion won in 2017 to 119.8 billion won in 2018, and an estimated 197.6 billion won in 2019. Earlier this month, Kwon Bong-seok, president of LG Electronics, pledged to make a turnaround in 2021.