2 weeks Ago By David Richards
Donald Trumps Tariffs have put LG Electronics consumer business under pressure especially in the TV and appliance market, now it appears that Trump may have played a role in the demise of an LG business that the Company was punting on to deliver growth. LG Electronics who have bragged about seeing future revenues coming from the B2b and automotive market, has had another failure with the Company who is making more money flogging confidential data captured using Web OS pulling out of the EV charging market. While we failed to get the press release announcing the embarrassing exit, we can reveal that the South Korean Company is pulling out of the electric vehicle (EV) charging solutions market after just three years and millions in losses with the removal by US President Donald Trump of EV charging infrastructure subsidies in the United States seen as a “kick in the guts” for the Company who had punted on the automotive market over TV’s and washing machines.
The Company has not said what impact the move will have however we do know that the Company’s HieV division lost A$15M during the past two years. The Company has admitted in filings that prolonged demand stagnation and intense price competition was the reason with Chinese Companies making life difficult for the Company. Earlier this week the business told partners that they have started to wind down operations in its EV charger business, formerly overseen by its Energy Solutions (ES) division.
A US production plant in the USA, which was their first overseas EV charger hub, has already been closed down. The company claims that they are currently exploring alternative uses for the plant which is still a cost on their books. LG first entered the EV charging market in 2022 through its acquisition of HiEV Charger and rolled out charging infrastructure in its home Country and then into the USA.
The venture had been considered one of LG CEO Cho Joo-wan’s key growth pillars, with ambitions to scale the operation into a multibillion dollar business by 2030. Currently the business is punting on heating, ventilation, and air conditioning (HVAC) business, including residential and commercial air conditioners, chillers, heat pumps, and data centre cooling solutions to deliver growth outside of their consumer business. The company also plans to expand their data capture of information on the lives of their customers using their WebOS software in an effort to sell the data to third parties while also looking to grow their TV and appliance subscription business.
“At one point, we aggressively pursued emerging businesses despite uncertainty,” CEO Cho said at LG’s annual shareholder meeting last month. “But in a rapidly shifting market environment, that approach no longer guarantees success. We will now adopt a more selective and focused model rooted in core products and technologies.
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