Focus on P-OLED Vehicle Displays
Turnaround Expected Through Business Restructuring
LG Electronics will become the first in the world to supply the plastic OLED (P-OLED)-based 'Digital Cockpit' system to Cadillac, the premium brand of global automaker GM.
[Asia Economy Reporter Dongwoo Lee] LG Electronics is strengthening its automotive components business, which has been struggling with losses. Earlier this year, the company began supplying displays and infotainment systems to major global automakers, aiming to achieve a turnaround (profitability) through restructuring its automotive components business.
According to industry sources on the 16th, LG Electronics recently became the first in the world to supply a plastic OLED (P-OLED) based 'digital cockpit' system to the 2021 Cadillac Escalade, a premium brand of global automaker GM. This is the first time a P-OLED, rather than a liquid crystal display (LCD), has been installed in a vehicle from a global automaker.
The 38-inch P-OLED display installed in the new Escalade integrates three screens into one, including the instrument cluster and two infotainment screens. It combines the central information display (CID), which shows key vehicle status such as driving speed and engine RPM, with an infotainment display for passengers into a single screen.
This display features a resolution exceeding 4K, offering excellent visibility. Since it does not require a backlight, it provides a differentiated user experience with various design forms and a wide viewing angle. LG Electronics also developed the software in-house to implement the integrated infotainment system. The software meets the international standard for automotive functional safety (ASIL). The company plans to supply rear-seat infotainment systems not only for the Escalade but also for GM’s new vehicles in the future.
LG Electronics receives all P-OLED panels used in the 2021 Cadillac vehicles from LG Display’s Gumi E5 line. LG Display supplies panels to major global automakers and automotive component companies such as Mercedes-Benz, BMW, Toyota, and Honda, besides GM, so the company is optimistic about the possibility of P-OLED adoption by these companies in the future.
The company has also unveiled a restructuring plan for its automotive components business. LG Electronics’ VS Business Division, responsible for automotive components, is focusing on infotainment, vehicle software and autonomous driving technology development, and motors, while the vehicle lamp business is handled by ZKW, an Austrian vehicle lamp company acquired in 2018. This strategy is interpreted as an effort to maximize competitiveness and efficiency through selection and concentration.
ZKW focuses on vehicle lamps, especially headlights. The industry expects that with the commercialization of autonomous driving technology, not only headlights but also taillights will be equipped with numerous auxiliary sensors for autonomous driving.
LG Electronics’ automotive components business recorded operating losses of 106.9 billion KRW in 2017, 119.8 billion KRW in 2018, and 197.6 billion KRW last year. The company plans to reduce the deficit this year by strengthening its automotive components business. Kwon Bong-seok, President of LG Electronics, said earlier this year, "We will achieve profitability in the automotive components business in 2021."
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