Mercedes-Benz, LG tie up for driverless vehicles
By Kim Yoo-chul
Mercedes-Benz and LG Electronics have agreed to jointly develop driverless vehicles, top executives at the companies said Wednesday.
LG Electronics CEO and Vice Chairman Koo Bon-joon met with Dieter Zetsche, CEO of Mercedes parent Daimler AG, during the International Consumer Electronics Show (CES), Las Vegas.
The main purpose of the one-hour meeting was mostly aimed at expanding LG's ongoing business partnership with Mercedes into futuristic vehicles, they said.
“We’ve discussed ways to form a broader partnership,” Koo was quoted as telling reporters after the meeting.
"We have been in talks with many carmakers. We’ve been in the vehicle navigation business over the last decade and it is now on track. From now on, we need to expand the scope of the vehicle component businesses.”
The CEO of the Daimler AG unit also said it plans to procure LG-manufactured, in-vehicle components and systems for its future driverless cars, according to LG officials.
During the show, Mercedes-Benz unveiled an autonomous car, which can speed along without a human driver at the wheel.
The fully electric F105 represents the carmaker's plan to be a major player in the upcoming autonomous car revolution, which will see driverless cars on our streets within five years.
The company will face tough competition from established car manufacturers and even upstarts like Google, which is expected to unleash its driverless car prototype this year.
Such emerging trends are providing big cues for South Korean technology companies such as LG and Samsung affiliates as Samsung and LG are one of the most-trusted parts suppliers for chips and displays.
For example, the F105 has a large-sized display and improved rechargeable batteries. It means LG Display, LG Chem, and LG Electronics have advantages to sell displays, batteries and other in-vehicle infotainment systems.
LG Electronics operates the vehicle component division, which entirely manages car components-related businesses. The unit created 1.3 trillion won in sales last year, up 20 percent year-on-year.
It secured around 6 trillion won worth of orders from carmakers as LG Electronics is sharing data with LG Chem, the world's biggest battery supplier, to boost its car business.
LG Electronics supplies LTE-based wireless modules to be used in connected services for General Motors, while it recently signed a contract with the Daimler unit to jointly develop stereo camera systems.