LG CEO hopes the business of EV parts to take off this year.
LG Electronics’ CEO Cho Joowan has stated that the company’s emphasis on the electric car (EV) components business over the last decade is beginning to show results.
“Our EV business has made a turnaround 10 years after we entered the market,” Cho Joo-wan, CEO of the company, said at a press briefing during CES 2023. “Now that the business is on the highway, all there is left to do is to step on the accelerator.”
The tech firm has forecasted its EV business to be turning into a profit in the last year, and will be able to continue making money throughout the year.
The CEO’s optimistic outlook has been confirmed by the CEO for the EV business, according to Yonhap, the news organization.
Eun Seok-hyun, the president of LG’s Vehicle Component Solutions division who also attended the meeting He said he is cautiously expecting the business of electric vehicles to grow substantially this year, reaching the 10 trillion-won mark ($7.8 billion) in sales.
“The EV parts business is in a period of rapid change where technologies of many other industries are integrated and converge.”
He added that LG has an edge over competitors in the industry due to its superior understanding of customer experience. “Based on that, we can proactively make suggestions on order-to-make products for our customers,” Eun explained.
In other areas of business, LG CEO said “transformative changes” are in store for LG’s TV business.
(CES) LG CEO expects EV parts business to take off this year https://t.co/IdbZwCrsy6
— Yonhap News Agency (@YonhapNews) January 8, 2023
As with other major TV manufacturers, LG has jumped into the race to be a top content provider with more than 180 million LG smart TVs.
LG collaborates with streaming service that is available on demand Paramount Streaming, a division of Paramount Global, to increase the quantity of media content for LG’s Smart TV running, webOS.
Paramount Streaming’s Pluto TV, a free streaming service that is ad-supported, has expanded channels for LG Channels, adding more than 100 channels worldwide in the first quarter of.
Cho stated that the ad-support model has been the key to LG’s business growth, with revenue soaring tenfold in the last year in comparison to 2018.
Despite the challenging macroeconomic situation LG’s top management team offered a positive outlook of the company’s performance into the coming years.
External factors that are negative, such as logistics costs, have revealed signs of improving according to the economist.