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Chinas factories will be the main source of electric car accessories
release time:2016-8-30 22:52:12  read:200

New energy vehicles OFweek webex According to the report, technology giant LG electronics group, a new electric car accessories production line has been completed and put into production, the production line is mainly to provide spare parts to gm. Recently, the production line will be put into operation, the new production line put into operation will make the south Korean company has just started auto parts production unit to profit in the near future.

LGs new production line is reported to be in the south Korean port city of incheon, which will be the center of the companys electronics business. Since this year, LG has been launched in the construction of the production line of 400 billion won ($356 million) fund, its construction projects including the new production line and the matched r&d center. In recent years, LG has invested nearly 300 to 40 billion won per year in various projects.

LG now offers more than 10 key components for the Chevrolet Bolt model made by general motors. The Chevrolet Bolt is a car that gm plans to launch later this year. LGs components include battery packs, inverters and components used in power assembly systems. It also provides LCD panel and data display system products.

Usually, carmakers will generally have parts supply on a wide range of supply channels, to spread the risk of a single supplier. But gm has largely opted for LG to provide components for its new electric car. Gms forthcoming Chevrolet Bolt electric vehicles to achieve an unprecedented range, match, pictures, quotation and the cost price may be less than $40000, general described the project as a subversive innovation. Universal joint LG electric car research and development for the parts together, and share with LG himself in the engine design, the battery control and other proprietary experience in automobile manufacturing technology.

For LG, the deal is largely the first time that it has tied up multiple parts to its customers. At present, LG has manufacturing plants in China, Vietnam and South Korea, while incheon is a key supply center.

In the april-june quarter, LGs sales of auto parts were close to won640bn, up 40 per cent from a year earlier. While the growth of its car business is continuing, LG has lost nearly 17 billion won in the auto parts business over the same period.

Integrate the group business

LGs business in the car industry used to be a fragmented business. LG chem, for example, used to provide car battery products primarily for gm. In 2013, LG set up a special auto parts division. The department operates under the direct management of group headquarters, mainly engaged in r&d and sales of vehicle navigation system, vehicle display and camera module.

At the same time, LG in incheon, production base, the first phase of project planning area of about 100000 square meters, and plans to send 800 researchers to a new base and other staff. With the joint efforts of the participating parties, the project has been basically completed and has been tested on environmental durability.

Of all the auto parts produced by LG, the battery product will be most promising in the future. Because for all electric cars, the battery is the core component that determines the overall performance and final cost price. LG has manufacturing plants in the U.S. and South Korea that produce lithium-ion batteries. In addition, another lithium-ion battery factory was built in nanjing, China, last year. The manufacturing plant in nanjing, China, will gradually provide lithium battery products to domestic carmakers. Although LGs capital expenditure is close to the red line, its orders are growing.

LGs nanjing plant has yet to receive administrative approval from the Chinese government. The Chinese government seems soon to issue new regulations, new regulations may require only a production of pure electric and plug-in hybrid electric vehicle battery manufacturers to qualify for a subsidy. Many companies have been seeking government support, but the vast majority of them are Chinese companies. LG plans to increase its lobbying on the Chinese government to maintain its competitiveness in China.