LG Electronics to supply auto displays to Honda, Porsche - source
SEOUL (Reuters) - South Korea's LG Electronics Inc <066570.KS> will supply Honda Motor Co Ltd <7267.T> and Porsche with in-car displays, a person with direct knowledge of the matter said on Friday, as the firm tries to grow its auto business to counter weak sales at its mainstay television and smartphone units.
LG Electronics has already started mass production of the centre information displays, which will be placed in the centre console, for Honda and will start doing the same for Porsche in the first half of 2016, the person told Reuters, without giving any details about the contracts.
Sister firm LG Display Co Ltd <034220.KS> is supplying the liquid crystal display panels, added the source, who declined to be named as the matter remained confidential.
LG Electronics declined to comment.
The company's fledgling auto business, which involves various products including in-car displays and camera systems, accounted for 3.2 percent of overall sales in the April-June quarter.
LG Electronics, along with sister firms LG Display and electric car battery maker LG Chem Ltd <051910.KS>, are making a concerted effort to grow their market share in the auto industry, as the vehicle components business offers longer-term, higher margins than consumer electronics, a business in which the firm is facing stiff competition.
LG Electronics is also working with BMW , General Motors and Mercedes Benz for research and development of centre information displays, the person said.
(This story corrects the LG Electronics vehicle components business' second-quarter revenue contribution in the fifth paragraph)
(Reporting by Se Young Lee; Editing by Richard Pullin and Miral Fahmy)
