LG Electronics is cooking something to serve for the Automobiles industry. Recently, at a press conference, the officials have spoken about the new factory for Electric Cars parts. For this, the company will spend over $25 Million and the factory will be built in Detroit.
In a recent statement, LG has said the there will be different factories for different parts and all these factories will be located in different regions. Like the US factory will only produce batteries for this Electric cars and the new Detroit factory will produce more car parts.
LG will not build their own Electric cars, however they will supply the components and other parts of the cars to various giants such as General Motors. The LG factories will build the battery cells and pack, power inverter,electric motor, on-board charger, climate control, instrument cluster and infotainment system.
Last year, LG had supplied a variety of parts to General Motors in building there new cars. For that reason, LG and GM both are dependent on each other in case of expanding their own Business in the world. In the first half of the current year, LG has build components worth $1.5 billion. This is about 43% growth if we talk about the initial times.
In order to start a new Plant in Detroit by building a new factory, the company has already received $2.9 million grant from the Michigan Business Development Program. Furthermore, this factory will provide employment to 292 works and engineers. With the help of this new plant, it will be more easier for the company to transport various parts to the production house. So, they can produce more vehicles as they will get the parts as per their requirements more conveniently.
For now, LG keeps their Business model limited to GM only and they have no any plans to expand their Business with various other manufacturers. Tesla has created a huge buzz around the automobiles industry by announcing new Electric cars and for that very reason, the manufacturers of different cars have started taking this seriously. For that, they have come up with their own new trendy technology cars that would be running with Electricity and not with the gas. This way, you can save more from your pocket. It will also help the environment and of course the whole new generations to consume pollution free air.
This is a revolutionary move by LG Electronics and hope we would get to see more such factories by other giants to change the entire automobiles industry.
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