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Speaker 1: South Korea's LG Electronics is betting on evs to help

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Speaker 1: drive its growth. In his first media interview since taking

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Speaker 1: the helm in twenty twenty one, CEO William Cho spoke

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Speaker 1: exclusively to Bloomberg Steven Angle about the company's plans to

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Speaker 1: generate sales from its so called vehicle solutions.

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Speaker 2: So, obviously there's lots of disruption and transformation in the

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Speaker 2: various different businesses that you are in. You want to

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Speaker 2: become more of a services company. Can you give me

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Speaker 2: kind of a roadmap of where you want to take

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Speaker 2: LG Electronics for the rest of this decade.

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Speaker 3: Algae Electronics will transform from its current position as top

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Speaker 3: homo plans and consume electronic company into a smart life

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Speaker 3: solution company with goal to achieve eighty billion US dollars

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Speaker 3: in revenue by twenty thirty.

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Speaker 2: What will be the cornerstone of that strategy. Obviously, you

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Speaker 2: said the appliances are key, but they're not high margin products.

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Speaker 2: Services would probably be more high value, and also the

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Speaker 2: telematics and the connectivity between the appliances not only in

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Speaker 2: the home but in vehicles as well.

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Speaker 3: That's true. We've been in consumer pacing business for nearly

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Speaker 3: seven years and now the biggest the strends is consumer

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Speaker 3: insight and a deep understanding on the consumer and their

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Speaker 3: living spacies, especially the home. But we are going beyond

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Speaker 3: home and aggressively entering into other species like commercial and

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Speaker 3: mobility and even the vultual space like metaburse. Now, I

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Speaker 3: would like to emphasize that we are going to secure

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Speaker 3: the global leadership in home appliances and consumer electronics because

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Speaker 3: we need to generate CASS and support and drive corporate

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Speaker 3: wide transformation. It is also a very important foundation for

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Speaker 3: success of platform based services. We viewed the all devices

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Speaker 3: becoming a platform and providing the multipool and diverse contention

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Speaker 3: and services that will be our main stream and more

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Speaker 3: profitvision smaller for us.

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Speaker 2: So the vehicle solutions division, you do a lot of components.

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Speaker 2: You do the telematics, you do this inside the vehicle

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Speaker 2: and the connectivity of the different entertainment systems and the like.

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Speaker 2: So how much will EV space be a percentage of

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Speaker 2: your company day by twenty thirty and would you consider

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Speaker 2: going into the EV space with your own branded product

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Speaker 2: like fox Con is looking at like Shaomi is looking

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Speaker 2: like Sony has already done big resurce.

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Speaker 3: And business is is a growth engine for alge Electronics

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Speaker 3: now and has been growing at an average growth rate

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Speaker 3: of thirty percent over the past decade and it accounts

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Speaker 3: for fourteen percent of total revenue in the first half

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Speaker 3: of this year. And our current or the backlog is

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Speaker 3: expected to reach out eighty billion US dollars by the

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Speaker 3: end of this year. So we are in the middle

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Speaker 3: of expanding our portfolio as a vehicle industry, the mobility

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Speaker 3: industry is evolving as a software defined vehicle. And for

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Speaker 3: your questions to be automaker, no, we have no intention

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Speaker 3: to be an automaker because we are going to focus

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Speaker 3: on what we can do well. So this means being

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Speaker 3: innovative and reliable partner for the EB automakers around the world.

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Speaker 2: Who are you really talking to in earnest with very

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Speaker 2: active discussions right now? There's been reports that you will

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Speaker 2: be could be making the Apple car or help Apple

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Speaker 2: make its car. Is there any truth to those discussions?

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Speaker 3: So, Steve, in fact, this is one of the most

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Speaker 3: frequently asked the question we're received. So I believe that's

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Speaker 3: because you know, the market recognized US and top players

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Speaker 3: in the mobliity sector and with proven the record, we

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Speaker 3: are confident and ready to cooperate with you know, cutting automakers,

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Speaker 3: any future automakers as.

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Speaker 2: Well, including potentially Apple if they do go forward. I

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Speaker 2: know they're delayed to maybe twenty twenty six. Some of

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Speaker 2: the autonomous technologies maybe needs a little bit more time

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Speaker 2: to work out.

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Speaker 3: Yeah, we're welcome, We'll welcome them.

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Speaker 2: Are you in direct talks with the likes of Apple?

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Speaker 3: Again, again, we are ready to cooperate with any future

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Speaker 3: and the current automakers, including any brand.

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Speaker 2: How do the US China difficulties affect your investment plans?

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Speaker 3: Actually is a global company is trying to provide as

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Speaker 3: much access to our product and solutions as possible to

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Speaker 3: our customers. However, like many other global companies, we are

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Speaker 3: closely monitoring the current geopolitical situations. We feel a little

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Speaker 3: bit of strained from you know, from Sply chain point

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Speaker 3: of view. So again we like to provide as much

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Speaker 3: you know, access to our product and solutions as possible.

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Speaker 3: We will keep analyzing the situation and to make an

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Speaker 3: optimun decision from mid long term point of view in

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Speaker 3: Sply Chain. But at the same time, there are certain

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Speaker 3: needs in Chinese market. Although we have the maddist presence

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Speaker 3: in the Chinese market. We are going to focus on

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Speaker 3: premium product which we can manufacture in Korea and the

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Speaker 3: other countries and distributions through the online channels so we

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Speaker 3: can customize our product to fit Chinese customers going forward.

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Speaker 3: We do have several production pieces which are working quite well.

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Speaker 3: We do have the module of production systems when UH

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Speaker 3: something goes wrong, so we can always you know, manufacture

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Speaker 3: from either side, either Chinese and Asia, but we don't

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Speaker 3: UH intensibly shift our Chinese production to UH Southeast Asia

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Speaker 3: for now.

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Speaker 1: Olga Electronics CEO William Troy there speaking exclusively to Boomberg

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Speaker 1: Sieven Angle at the company's headquarters in Seoul,