LG Electronics Named Toyota's "Excellent Supplier" for Automotive Components Value Innovation

"Highest Value Innovation Award" at North American Annual Supplier Meeting
Timely Supply of High-Quality, High-Spec Components
Contributing to Strengthening North American Supply Chain
Toyota Expands Advanced Telematics Supply in North America
LG Electronics Achieves No. 1 Market Share in Automotive Telematics

LG Electronics announced on April 22 that it has received the "2024 Highest Value Innovation Award" from the North American division of global automaker Toyota.

Toyota presented this award to LG Electronics at the "Annual Supplier Business Meeting" held recently in Detroit, Michigan, USA. This is the first time that LG Electronics has received this award from Toyota.

LG Electronics has been recognized for its capabilities in supplying automotive components to the North American market by Toyota, the world's largest automaker, and has been selected as an "Excellent Supplier." The photo shows Oh Haejin, Executive Vice President and Head of LG Electronics Vehicle Component Solutions North America (fourth from the left), and Tomo Iiikubo, Vice President of Parts and Materials Purchasing Management at Toyota North America (second from the left), at the "Toyota Annual Supplier Business Meeting" held in Detroit, Michigan, USA. Photo by LG Electronics

Toyota North America evaluates its partners each year based on various criteria, including technological capability, quality, cost, supply capacity, and value innovation, and selects excellent suppliers accordingly. This award is significant in that Toyota has officially recognized LG Electronics as an "Excellent Supplier." It also demonstrates LG Electronics' capabilities in supplying automotive components to the North American market and solidifies its position as a key partner for customers in the future vehicle sector.

Since the COVID-19 pandemic, LG Electronics has secured overall supply chain stability through company-wide manufacturing innovation and systematic operational strategies, even amid complex crises such as global supply chain instability and supply-demand disruptions. Based on these efforts, the company has supplied high-quality automotive components that meet Toyota's standards in a timely and reliable manner. In addition, LG Electronics has contributed to strengthening Toyota's supply chain competitiveness in the North American market by jointly pursuing proactive cost-saving initiatives such as process improvements and materials and logistics optimization through close collaboration with Toyota, thereby achieving sustainable cost innovation.

LG Electronics has maintained a continuous partnership with Toyota since it began supplying navigation boxes in 2011. Since 2019, the company has expanded its supply of advanced telematics (in-vehicle communication modules) solutions, focusing on North America, which accounts for 30% of Toyota's total sales, and has established itself as a trusted partner.

In particular, LG Electronics' in-vehicle telematics control units are equipped with advanced features, including V2X (vehicle-to-everything) solutions, which enable vehicles to exchange information with various objects and infrastructure on the road based on 5G communication, as well as top-level cybersecurity capabilities.

According to LG Electronics' own estimates based on data from market research firm Strategy Analytics, the company achieved the No. 1 position in the global telematics market last year with a 24.4% market share. With rising demand for connected cars and advances in autonomous driving technology, the global telematics market is expected to continue growing. In response, LG Electronics aims to further strengthen its leadership in the telematics sector through close cooperation with global automaker clients.

LG Electronics Executive Vice President Eun Seokhyun, head of the VS Business Division, stated, "This award is the result of LG Electronics' innovative technological capabilities, stable supply capacity, and close collaboration based on trust with our customers. We will continue to expand cooperation with global automaker clients based on differentiated technologies in line with changes in the future mobility industry."