By Kim Yoo-chul
LG Electronics plans to operate a car component business from July 1 in a bid to diversify the company’s portfolio, according to an industry source who is familar with the matter, Thursday.
“LG Electronics will launch a new division that sells various car-related platforms and solutions to leading car manufacturers. The new division will go into operation from July 1,” he said.
The company acquired a 100-percent stake in V-ENS, a former affiliate of LG CNS for 17 billion won on May 1. V-ENS is a specialist in designing and manufacturing car components. V-ENS has 400 employees and operates plants in Malaysia and China.
“As the car-parts market looks lucrative and has a higher growth potential, LG needs to strengthen that business. V-ENS’ chief executive Lee Woo-jong will lead the new division,” said the source.
With the launch, LG Electronics’ divisions will increase to five _ mobile communications, home entertainment, home appliances, air-conditioning and energy solutions, and car components.
The company sells navigation, telemetric and infotainment solutions to Hyundai Motors, Renault-Samsung, Volkswagen and Toyota.
LG Electronics has been shifting its focus toward less-volatile component-related businesses as a strategy to cut its heavy reliance on less-profitable consumer electronics gadgets.