LG Electronics has established a research institute for self-driving technology to research on self-driving technology, which will be an important technology for future vehicles. LG Electronics is hoping to secure technical leadership in self-driving technology field and strengthen competitive edge for its VC (Vehicle Components) business.
This institute was set up to develop preceding technologies and components that are related to self-driving technology and make them commercial along with VC Business Headquarters. Executive Director Yoon Yong-chul, who is serving as the director of Vehicle Components Technology Center, will serve as the manager of this institute.
Starting from last year, LG Electronics has established groups one after the other to strengthen R&D for vehicle components and capabilities of design. Under guidance by CTO, LG Electronics established Vehicle Components Technology Center and Research Institute for VC Design last year.
By establishing research institute for self-driving technology this year, LG Electronics now has a R&D system that can respond to vehicle components, design, and future technologies. LG Electronics especially has been researching on self-driving technology even before this institute was established by hiring employees that are specialized for this technology. It is currently co-developing components for self-driving technology with NXP (previously FreeScale).
“Level of importance for self-driving technology as a technology for future vehicles is rising.” said a representative for LG Electronics. “This institute will be in charge of making a preceding research on technologies that are related to self-driving.”
Industries are looking at continuous establishment of research institutes by LG Electronics as LG Electronics’ plan to be more aggressive in vehicle components business.
“LG Electronics, which had been actively investing into R&D for vehicle components, is combining research groups under CTO.” said a representative for an industry. “It is expected that LG Electronics will become more aggressive in vehicle components business.”
Actually LG Electronics has been preparing to expand its VC business by steadily expanding appearance of VC Business Headquarters. Number of employees increased by 52% in just one year as there were 3,625 employees by end of first quarter of this year. Its sales also increased by 55% in just one year as it made $498 million (592.9 billion KRW) in first quarter. It is expected that level of performance for VC business will increase in the future as VC Business Headquarters is going to supply 11 types of major components to GM for its next-generation electric vehicle called ‘Chevrolet Bolt EV’ starting from second half of this year and as it won a contract from a new automotive business in first quarter.
Not only are automotive industries considering self-driving cars as a future driving force, but entire ICT (Information Communication Technology) industries consider them as the most important future driving force. This is why businesses are competing against each other and forming alliances to compete against others. Google and Toyota are working with Fiat Chrysler and Microsoft respectively while BMW is working with China’s internet business called Baidu. Hyundai Motors has declared its cooperation with Cisco. LG Electronics is operating a separate research institute and is looking to create many businesses by raising responsiveness towards self-driving cars by using its current capabilities in IT.
Staff Reporter Jung, Youngil | jung01@etnews.com
