CEO William Cho outlined the company's strategies and outlook for reshaping the fundamental dynamics of transportation.
Why It Matters
LG's evolution from a primary consumer electronics manufacturer to a mobility influencer reflects the ongoing transformation of the automotive industry as it becomes more deeply integrated with technology.
The Key Points
- Company's New Direction: LG's transition to a "smart life solutions company" was first hinted at with its ThinQ UP 2.0, which focused on home appliance connectivity. This latest revelation at IAA MOBILITY demonstrates its broader intent to shape future mobility experiences.
- Transitioning Automotive Landscape: As vehicles become more autonomous and electric, LG envisions cars that transcend their transportation utility and emphasize enhanced user experiences. This vision leverages LG's long history of understanding global consumer preferences.
- LG's Mobility Expansion: LG's Vehicle Component Solutions (VS) business has been growing steadily in line with its decade-long strategic input. In support of this trajectory, Strategy Analytics noted LG's 23.3% market share in global vehicle telematics last year and its consistent presence in the AVN segment by 2021.
The Strategical Details
Alpha-able themes - LG's Alpha-able vision, derived from consumer insights, includes:
- Transformable Experience: Aiming to make car interiors malleable to user demands through innovative display technology and home appliance knowledge.
- Explorable Experience: Leveraging AI and XR technologies, LG aims to provide context-sensitive, adaptive journeys for passengers.
- Relaxable Experience: Leveraging various insights, LG's vision is to create a vehicle environment that emphasizes relaxation and personal well-being.
Three strategic axes for EVs
- In-Vehicle Infotainment: VS Company's offerings aim to provide a blend of entertainment and essential driving data.
- Electric Powertrain Systems: LG Magna e-Powertrain, a joint venture with Magna International, is preparing to establish a manufacturing base in Hungary, signaling ambitions for a larger share of the European EV market.
- Vehicle Lighting: Products from ZKW Group (an LG subsidiary) highlight LG's focus on critical technologies likely to dominate future mobility.
EV charging infrastructure: With the earlier acquisition of HiEV Charger, LG plans to strengthen its position in the EV charging infrastructure sector.
The unveiled chargers prioritize user convenience, safety, and efficiency, showcasing LG's diverse expertise.
CEO Cho invited industry partners to join hands, reaffirming LG's commitment to innovation in the mobility sector.