Mercedes-Benz chairman holds high-profile meeting with Samsung, LG

Mercedes-Benz Group Chairman Ola Kallenius, fourth from left, poses with heads of LG Group’s key auto parts affiliates, after discussing their technological partnership, at LG Twin Tower in Seoul, Thursday. They include LG Electronics CEO Cho Joo-wan, fourth from right, LG Display CEO Jeong Cheol-dong, third from right, LG Energy Solution CEO Kim Dong-myung, second from right, and LG Innotek CEO Moon Hyuk-soo, right. From left are Kuersat Kartal, head of Mercedes-Benz R&D Korea Center, Ida Wolf, head of Mercedes-Benz Group's corporate office, and Mercedes-Benz Korea CEO Mathias Vaitl. Yonhap

Mercedes-Benz Group Chairman Ola Kallenius held high-profile business meetings Thursday with top executives from Samsung and LG to strengthen their auto parts partnership amid the shift to electrification.

He met with Samsung Electronics Executive Chairman Lee Jae-yong and a group of other CEO-level officials from the two Korean conglomerates. This marks the first visit by the Mercedes-Benz chief to Korea since 2023.

The Mercedes-Benz chief was widely expected to discuss future ties with the carmaker’s major Korean clients in areas such as batteries, in-vehicle displays and auto chips, as the luxury automaker undergoes a major shift to electrification.

The focus is on whether Samsung can deepen its battery partnership with Mercedes-Benz. In September, LG Energy Solution secured a large-scale battery supply contract worth 15 trillion won ($10.2 billion) from the German automaker.

Mercedes-Benz sells electric vehicles (EVs) equipped with batteries from Korean firms, such as LG Energy Solution and SK On, for the Korean market, but Samsung SDI has yet to supply its EV batteries to the automaker.

Mercedes-Benz Group Chairman Ola Kallenius smiles as he receives questions from reporters ahead of his meeting with top executives of LG Group at the Korean company's headquarters in Seoul, Thursday. Yonhap

Kallenius' dinner meeting with Lee at Seungjiwon, Samsung Group's VIP guest house in Seoul, is fueling expectations that the German automaker may diversify its battery supply chain to include Samsung.

Samsung SDI CEO Choi Joo-sun and Harman CEO Christian Sobottka accompanied Lee and Kellenius for the dinner meeting.

The high-profile event raises hopes for Samsung SDI to clinch potential battery deals from Mercedes-Benz, as the German luxury carmaker is on track to build a full-fledged EV lineup.

Samsung Electronics also hopes to expand its partnership with Mercedes-Benz in semiconductors. Samsung supplies auto chips to BMW and Audi, but does not supply them to Mercedes-Benz.

LG Group is forging deeper ties with Mercedes-Benz than Samsung Group. Starting with in-vehicle displays, LG has supplied multiple auto parts to the automaker since 2004.

The Mercedes-Benz chairman met with LG Electronics CEO Cho Joo-wan and LG Energy Solution CEO Kim Dong-myung and LG Display CEO Jeong Cheol-dong in Seoul.

"At Mercedes-Benz, we firmly believe that strategic, collaborative partnerships are the driving force which shapes our net-generation vehicles," Kallenius said. "Together with LG, we share a vision built on innovation, quality and sustainability. By combining our strengths, we're creating vehicles that will set new global standards."

LG Electronics is rapidly expanding its global profile in its vehicle component business. The firm’s vehicle solution unit reported a record operating profit of 149.6 billion won in the third quarter on growing demand for in-vehicle infotainment systems from its international clients.

"LG will further solidify our strategic partnership with Mercedes-Benz by leveraging our core competencies in the vehicle components business, including our user experience-centric value proposition, integrated software-defined vehicle solution portfolio and our globally proven technology and reliability," the head of LG Electronics said.

Mercedes-Benz Group CEO Ola Kallenius, left, poses with HS Hyosung Vice Chairman Cho Hyun-sang, at the world’s first dedicated showroom and service center exclusively for Maybach customers here in Seoul. Courtesy of Mercedes-Benz Korea

Kallenius also met with HS Hyosung Vice Chairman Cho Hyun-sang on the same day to discuss the carmaker’s sales strategy in Korea. HS Hyosung The Class is the official dealership of Mercedes-Benz, operating showrooms and service centers across the nation for the auto brand.

Harman, acquried by Samsung in 2016, is also expected to widen its business opportunities with Mercedes-Benz and other premium carmakers.