BMW and South Korea's LG Group will discuss future partnerships when officials from the two companies meet in Munich (Germany) this week, reports the Korea Herald. LG executives from the five LG affiliates involved in automotive manufacturing – namely LG Electronics, LG Innotek, LG Hausys, LG Display, and LG Chem – will meet with their BMW counterparts.
Significance: The talks come as LG aims to garner more contracts in the automotive sector, while BMW is looking to expand its supplier base in Asia. LG Electronics has recently added a brand new affiliate for making car components, and it is seeking contracts from global automakers. Similarly, LG Innotek (which manufactures motors, headlights, and sensors) and LG Chem (which makes electric car batteries) are also looking to forge global partnerships. Meanwhile, over the years BMW has been increasing its supplier base in Asia, signing contracts with many South Korean suppliers such as Hyundai Mobis and Samsung SDI and tyre-makers such as Hankook and Kumho Tires). If the partnership materialises, it will be yet further testament to the growing reputation of South Korean component suppliers and their expanding global client bases, a trend that has also been aided by the free-trade agreements that South Korea has signed with Europe and the United States. BMW's interest in South Korean suppliers is also down to the fact that South Korea as a market has become important for the automaker. BMW is the leading imported brand in South Korea and last year the market became the automaker's 10th largest globally, with sales of 34,106 units.
