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THE INVESTOR]
LG Electronics will start supplying parts for General Motors’ upcoming full-electric Chevrolet Bolt from later this month.
The Korean tech giant plans to supply 11 key parts, including the motor, invertor and battery pack, for the next six years.
GM’s Chevrolet Bolt EV concept
The car is expected to be launched in the fourth quarter.
LG’s vehicle component is making a big push to secure more orders from global carmakers.
Industry watchers expect the division’s sales to surge to 3 trillion won ($2.71 billion) this year, as compared to 1.8 trillion won last year.
“The VC division has posted two-digit growth every year,” said Park Kyung-ryul, an executive director of the division, in a recent conference call. “We expect positive cash flows in the longer term.”
Despite upbeat sales in recent months, it will take more time for the division to see profits. It will focus on securing more clients in the coming months.
LG was chosen as a telematics systems supplier for Toyota Motor’s new vehicles sold in Japan and North America. Currently, the company is the No. 1 player in the global telematics market with some 30 percent market share.
By Lee Ji-yoon (jylee@heraldcorp.com)
