LG Electronics decided to establish a joint venture corporation for electric vehicle parts with Magma… Forecast of turbulence in the future automotive industry ecosystem
Last week, news came out that Apple will introduce self-driving electric vehicles in 2024. LG Electronics announced that it has decided to establish a joint venture for electric vehicle parts with Canadian Magma, a global auto parts maker. As traditional IT companies’ attempts to cross the territory targeting the future automobile market such as electric vehicles and self-driving vehicles become visible, it is interpreted as a sign that the topography of the future automobile industry will be drawn anew.
According to Reuters on the 22nd (local time), Apple is planning to launch a new’monocell’ design autonomous electric vehicle that has reduced cell capacity and eliminated pouches and modules in 2024. The news is that it is equipped with an innovative battery that can drastically lower costs and increase vehicle mileage.
It is not new that Apple has shown interest in cars. Since 2014, Apple has been developing automobiles by creating an autonomous vehicle division under the project name’Titan’. At the same time, the same year’Car Play’ service was introduced. Carplay is a service that allows users to use some of the iOS apps by linking a smartphone to the vehicle infotainment system. It was an attempt to expand the scope of the operating system (OS), which certainly dominates the ecosystem. But since then, Apple hasn’t made much progress. At one time, there were reports that Apple ended the auto business by firing auto-related personnel one after another.
However, it is reported that in 2018, the company recruited Tesla-born Doug Field, vice president, and began developing the technology for the finished vehicle again. Apple recently succeeded in developing digital key technology with BMW. Digital key is a technology that opens a vehicle door by itself simply by holding the smartphone on the vehicle door handle. Digital keys have been applicable only to Android phones in Korea, but as Apple collaborated with BMW, the iPhone can also be used as a smartphone that can lock and open vehicle doors.
Apple is also working with BMW on developing the connected technology essential for electric vehicles. BMW announced at the Apple World Developers Conference online in June that it will put route-finding technology into the pure electric i4, which will be released next year. To this end, he also said that he would actively utilize the mapping technology made by Apple.
In the midst of this, Dutch IT media Let’s Go Digital unveiled a concept design for an autonomous electric vehicle (see photo) being developed by Apple on the 23rd (hereinafter, local time). The Apple Car adopts a design that improves safety by securing a cool view of the driver and passengers. The Apple logo and sleek design on the front of the car also stand out.
As reported by foreign media, if Apple mass-produces cars under its own brand, it is expected to have a considerable impact in the auto industry. This is because Apple’s vertical integration strategy can shake the traditional supply chain structure of the automotive industry. On the other hand, there is a view that Apple will not be able to jump in easily given the high barriers to entry and enormous investment costs in the automobile industry. For example, it took Tesla 17 years to make a profit after its establishment.
Meanwhile, another topic related to the electric vehicle market appeared last week, attracting attention. It was news that LG Electronics will establish a joint venture (Joint Venture) that produces electric vehicle parts by investing 1 billion dollars (about 1,109.3 billion won) with Magna International, the world’s third-largest auto parts maker. As Magna was mentioned as a development partner of Apple Cars, it was also cautiously observed that LG Electronics created an opportunity to further expand its automotive business.