LG's ZKW, Rehau Automotive to jointly design EV fronts

Industry

Published: 11 May. 2023, 17:47

LG's ZKW, Rehau Automotive to jointly design EV fronts

ZKW and Rehau Automotive logos in a concept image of an electric vehicle front that the two companies will jointly develop. ZKW is an Austria-based automotive lighting subsidiary under LG Electronics. [LG ELECTRONICS]

ZKW, an automotive subsidiary of LG Electronics, will develop electric vehicle (EV) fronts with Rehau Automotive, a German auto part supplier.

LG Electronics acquired ZKW, an Austrian automobile lighting supplier, for 1.44 trillion won ($1.1 billion) in 2018.

Rehau Automotive produces bumpers and exterior systems for cars.

The two companies, which recently signed a memorandum of understanding for the joint project, will together build an integrated system for vehicle fronts consisting of lighting, sensors, electronics and bumpers, according to LG Electronics Thursday.

As EVs lack the front grills seen on traditional combustion engine-powered cars, vehicle fronts are a crucial element of EV design.

The companies also plan to further improve the safety features with front bumpers.

LG Electronics has been focusing on the fast-growing EV business as a new growth engine.

The company’s automotive part business consists of three pillars: LG Electronics’ in-house vehicle component division, which supplies infotainment systems for EVs; LG Magna e-Powertrain, specializing in key components for EV powertrain systems such as motors, inverters and onboard chargers; and ZKW, which produces auto lighting.

In the first quarter, LG Electronics’ vehicle component business reported an operating profit of 54 billion won, up from the previous year’s loss of 6.7 billion won, thanks to strong demand for electric cars. Sales rose 27.1 percent to 2.39 trillion won.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]