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LG Moves From Smartphones To Electric Vehicles

After six years of losses, LG is ending its smartphone business next month, and pivoting into the electric-vehicle market.

Next month, LG will spin off its EV drive system segment, sell 49 per cent to auto parts supply company Magna International, and launch a joint venture, LG Magna e-Powertrain, aimed at capturing this market.

Last year, vehicle components made up 11 per cent of LG’s total revenue. Magna already supply GM, BMW and Ford.

LG forecasts it will expand sales at a pace of 15 per cent per year, and double its annual profits in this sector by 2024.

“We will develop auto parts into a growth engine and transform ourselves into a key supplier,” said LG Electronics CEO Kwon Bong-Seok.

 

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