Connect with us

Hi, what are you looking for?

CleanTechnica

Cars

LG Electronics Gearing Up For Mass Production Of Chevy Bolt Core Parts

Chevy Bolt CaliforniaAs part of the rapid growth of its relatively new vehicle components unit, LG Electronics has begun gearing up for the mass production of core parts for GM’s Chevy Bolt electric car — which is expected to begin by the end of the month — according to reports.

In preparation for the beginning of mass production, LG has established a number of new production lines at its Incheon research center, in order to meet demand for 11 core components of GM’s upcoming electric vehicle (EV). These components include: inverters, motors, infotainment system components, and more.

chevy_bolt_mulesAs some background here, LG opened the “Incheon Campus,” located west of Seoul, back in 2013 in order to support the vehicle component (VC) business that it launched at the same time. Since its inception, the company’s VC business has been invested into substantially and in growing quantities. The company apparently sees the division as its next “cash cow.”

The Korea Times continues, noting that despite “some major contracts with global automakers including GM, the division is yet to post a meaningful surplus. The VC division had a 16.8 billion won ($15.23 million) operating loss in the second quarter. But the company remains optimistic about its new growth engine, after sales in the first half of the year skyrocketed 47.9% compared with a year ago to 1.23 trillion.”

Continuing: “LG Electronics plans to invest up to 400 billion won in the VC unit this year. Given its growth in recent years, expectations are that the auto parts division will drive the firm’s overall sales in the second half of the year. Last month, the company said in a regulatory filing that LG and GM signed a partnership deal in October 2015 for LG to mass-produce parts for the Bolt for 6 years, starting this month.”

Commenting on the relatively long period of time that the division has taken to become profitable, an LG Electronics was quoted as saying: “Automakers are very strict in terms of safety and form a long-term relationship with only a few qualified parts suppliers due to safety concerns. That’s why it takes more time for us to generate tangible results in the business. We are still in the investment phase.”

As some further background, LG Electronics currently maintains 3 primary VC manufacturing facilities: the one in Incheon; one in Nanjing, China; and one in Haiphong, Vietnam.

Images by Kyle Field for CleanTechnica

 
Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 
 

Advertisement
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

James Ayre's background is predominantly in geopolitics and history, but he has an obsessive interest in pretty much everything. After an early life spent in the Imperial Free City of Dortmund, James followed the river Ruhr to Cofbuokheim, where he attended the University of Astnide. And where he also briefly considered entering the coal mining business. He currently writes for a living, on a broad variety of subjects, ranging from science, to politics, to military history, to renewable energy.

Comments

You May Also Like

Clean Power

Earlier this fall, or late summer, Hurricane Ida devastated my state. I was left without power for almost a week, and during the first...

Cars

Chevy Bolt production is shut down at least through the end of this year.

Cars

Menlo Park is upgrading its police fleet and has been approved by the city council to purchase three new Tesla Model Y vehicles for...

Cars

In 2018, the Tesla Model 3, Nissan LEAF, and Chevy Bolt were new electric cars with 200-ish miles of range and sub-40K price tags....

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.