LG at IAA MOBILITY 2023 : LG Press Conference - Live I LG
Good morning, everyone! What a pleasure to be in Munich today to kickstart the IAA Mobility press conference. Thank you for making it here early this morning and hello to all tuning in live from around the world I am personally thrilled to be back in Germany where I have fond memories It was in fact my first overseas assignment with LG and all family members really had good time in Deutschland. Now, you may wonder why LG Electronics is here today. Not many of you may know, but we entered this business 20 years ago by mass producing our first Audio, Video, Navigation and Telematics systems for a major automaker. Today, we are here to share our perspective on the future of the mobility industry and present the roadmap of LG Vehicle Solutions Company which is now a major growth engine for LG Electronics.
LG spent close to 70 years in the consumer-facing business Throughout this time, we have gained a rich understanding of global customers and their living spaces by endlessly discovering new insight and trends, which eventually turned into many different innovations in the industry of consumer electronics. With our extensive knowledge and experience in this area, we are so excited to present our new take on mobility. As we all know, the mobility industry is evolving dramatically, changing our traditional belief on cars. Our in-depth customer research directed us to see mobility through the lens of customer experience, focusing on 'expanded space in the car' and 'quality of time spent on the road'. Three years ago, with this approach, we introduced our first future mobility concept, "OMMIPOD," showing how your home can be extended to the road. And recently, we created an environment similar to actual autonomous driving and observed how customers behave.
Through this experiment, we found customers consider their cars as a space of their own to work, play, and stay. So with this concept, we could come up with an idea to redefine the car as a 'personalized digital cave'. In fact, similar results were found through in-depth surveys of today's drivers.
Through social media, we asked over 31,000 respondents from Germany, UK, US, and South Korea about how they perceive cars in their daily lives. 72% described car rides as a "time to enjoy myself." 43% answered their car is a meaningful personal space - beyond just a convenient means of transportation. As you can notice, with electrification and autonomous driving being accelerated, today's mobility is shifting towards software defined vehicles. This means future mobility will transform into highly sophisticated electronic devices and can be seen as more of moving space to provide new experiences.
So, our findings and current market trends have prompted us to develop the three key customer experience themes They are Transformable, Explorable and Relaxable themes that we call 'Alph-able.' Our interpretation of making anything possible. Now, let me deep dive into each one.
The first one is Transformable experience. In fact, there have been a lot of discussions about future mobility in terms of physical transformation and extended role of the car. However, despite many discussions, it is still unclear how the changes will exactly happen. So today, as an expert of customers' living spaces, we would like to introduce a few example of physical transformation in the car. Let's think of home, office, movie theater, and restaurant in our daily life. Here, we spend our time in spaces with dedicated purposes.
Likewise, the vehicle, as a personalized digital cave, should be able to transform into multi-purpose space according to the travel situation and driving purposes. Let me take an example. With modular and small-sized appliances, you can turn your car into a restaurant on the go, providing a gourmet experience and the comfort and privacy of your car.
On immersive displays with diverse form factors, you can even lay down and watch your favorite film like in the most comfortable movie theater on the road. With an integrated AVN system, there is no other place more productive and safer to have discussion or deal negotiations with your business parterners. And to bring these transformable experiences to life, LG's leading tech innovations, such as transparent, flexible and rollable displays, and a wide range of small home appliances, can be unique solutions for future mobility. Now, let me talk about Explorable experience. According to our survey, only 19% answered driving itself as their favorite car experience. On the other hand, nearly 40% said they are happiest when listening and singing along to music in the car.
In a fully autonomous driving in the vehicles, imagine how much this joyful experience can be elevated. Your unique travel experience begins as you start your car. The car understands your travel details and knows how you have consumed the contents on the road.
If you want, you can interact with your AI assistant to get an exclusive information on your destination. Based on calculated trip duration, your vehicle can recommend the content options within your travel time frame. And the built-in camera technology enables you to share the beautiful road views with your friends in a real time. In-vehicle experiences can be further enhanced through XR technology, which is another trigger point to dramatically change your experience in the car.
Imagine a car window covered with transparent OLED display combined with AR technology. During your routine commute in the city, you can enjoy a whole different new drive experience on the most scenic road. You can even invite your virtual companion to come along with you. What's more, you can even change the look and feel of in-vehicle space to something entirely different like a futuristic spaceship or a racing car. Do you think this is too far in the future? No, we don't think so.
We believe the combination of advancing AI and XR technology will soon bring the future much closer to us. Finally, Relaxable experience. In our survey, more than 65% answered they remain in their cars even after arrival, just to have some time alone. This indicates customers perceive their cars as a space to relax and spend time for themselves. Why don't you imagine a car sensing your stress level and offering services to help you maintain optimal physical and mental well-being.
While staying in the car, you can enjoy a peaceful garden, and inhale fresh air in the middle of busy city. You can even lie down comfortably in your seat with heated massage, or unwind your day with AI counseling. LG's long years of experience in air care, digital health and wellbeing care will be instrumental to create another level of Relaxable experiences so customers can enjoy "Me time, " resting and recharging with advanced technology and connected services.
So, to recap our discussion today, we redefine the vehicle as a personalized digital cave and proposed our new take on mobility, suggesting three key experiences that will completely change the future of mobility. Our core message is that we strongly believe future mobility should focus on the mission to deliver another level of customer experience. And LG, with innovative vehicle solutions, is more than committed to this important mission. Because this is what we are specialized in. And this is a part of our DNA to realize our earnest promise of Life's Good.
As we are endeavoring to unlock the future of mobility, we sincerely would like to invite you to join in this exciting and important journey. Before we close, let me confirm we will showcase 'Alph-able' in person in a few months as the next future Mobility concept from LG Electronics. Now, let me hand it over to Areum from LG Vehicle Solutions Company to take you through where LG is today in this important Journey. Thank you very much. Thank you, William.
For more than a decade, LG has been an Innovative partner to global automakers. Currently, the auto industry is evolving from conventional cars into Software Defined Vehicle. This is a very important juncture in the history of mobility. At LG, we are actively preparing for what's to come in the fast-approaching era of the SDV.
While we focus on future mobility and our journey towards 'alph-able', our technologies are bringing the innovations of tomorrow into practical mobility experiences of today. We are doing this in three key directions. LG is constantly researching new form factors that are best suited to the SDV environment. We want to provide new mobility solutions that completely elevate the in-vehicle experience.
What LG envisions is a livable space on wheels, and we're going to get there faster than you might think. In a fully autonomous vehicle, many things will no longer be needed. For example, components such as the steering wheel and instrument cluster can be removed if necessary. Also, the dashboard can expand to display full range of information. In this scenario, we need a different kind of display, a display that can be rearranged like furniture. How about a display that actually folds? LG has developed the world's first integrated plastic OLED display for different user scenarios.
We have developed different display products designed specifically for vehicle use. Leveraging our hardware, software, and E&E architecture capabilities, we can provide tools, which remove limitations to vehicle interior design. And how about flexibility? Having considered all aspects of the driver and passenger experience, we can now go beyond a single interface. Now, users can access and input information more flexibly. When the driver requires precise information for driving, a standard display mode is provided. When interfacing is required, you can select a simple touch UI for climate control or multimedia contents.
And if you need to type something - the flexible display slides out further to provide a full keyboard. We are developing various displays optimized for different transformable scenarios. This will all be common place in the near future.
We employ various approaches to leverage specialized mechanical structures and HMI. Each of them are optimized for specific situations within the vehicle. All cockpit interfaces will be digitalized with seamless integration of features and UX. Users will explore a wide selection of content, tailored to their specific interests and preferences. At present, LG is working on several major projects in this area of connected infotainment systems. For our next direction, we believe that a truly fun mobility experience goes far beyond the drive.
Content lovers will be able to share multimedia contents with one another. Some can catch up with friends, family, and co-workers via video call. Looking ahead, we plan on applying an augmented reality engine to seamlessly blend the physical and virtual in-vehicle experience. The windshield will become more than just a 'window' to the world. It will become an intelligent, interactive display solution that communicates with passengers and the outside environment. While traveling, promotional information will be provided, based on local points of interest.
Passengers will also be able to browse and shop without leaving the car. The third direction is to provide a better, relaxing mobility experience. For this, we have to first understand what helps people unwind. You can be seated comfortably in a private space with a pleasant atmosphere. Through in-cabin analysis, the vehicle is able to understand your needs, serving as your personal assistant. In this personalized environment, LG's solutions are monitoring your vital signs.
This data is then combined with user behavior patterns. It figures out how to cater your needs most effectively. At LG, we are committed to the seamless integration of all mobility experiences.
We look forward to bringing 'alph-able' into your life in the near future. In order to make all these happen, cars are becoming more like super computers with enhanced connectivity. With LG's advanced AI algorithms, high-speed and high-capacity 5G Telematics, and data intelligence from smart home experience, we can achieve great things in the mobility space. Even as I speak, LG is working with global automakers to bring 5G release 16 and 17 into automobiles. As we develop new mobility innovations, data security and safety is a top priority for us.
LG's cyber security management system ensures data security, while our functional safety management solutions deliver both convenience and security. In addition to our In-vehicle Infotainment business, LG's mobility solutions cover the realm of intelligent vehicle lamps and e-powertrain. We are proud to have advanced lighting systems provider, ZKW Group, and LG Magna e-Powertrain, our joint venture with Magna International, as part of our commitment to future mobility. And LG Electronics as a whole, is looking into businesses closely related to the mobility industry, such as EV charging solutions.
It is our mission to understand all facets of mobility lifestyle which affect the end-user. To celebrate today's press conference and reaffirm our mutual commitment to future mobility, our valued partner Magna International is here with us today. Please welcome Diba to the stage.
Thank you, Areum, for this introduction, and for inviting Magna to on this stage today I am very excited to make this announcement with our partners today. The progress across the automotive industry in electric vehicles is incredibly promising. I am a powertrain guy and there is nothing more exciting to me than how we supply power to the wheels.
Through electrification, we are now able to realize this in a more sustainable way. For more than 65 years, Magna innovations have shaped how people live by improving how they move through the world. We're making mobility accessible to more people by making vehicles cleaner, safer and smarter. Big thinking like this, gives me so many reasons to be optimistic about the future. Working side-by-side with companies like our partner, LG gives me that same positive sense. When LG and Magna formed a joint venture in 2021 to offer automakers scalable e-drive components, it gave us a collaborative advantage.
Alliances like ours share a common purpose - and provide a competitive edge in the global market. This is especially true in this technology sector, which is fueled by innovation. Together, we're making great progress.
In just over two years, the LG Magna e-Powertrain joint venture has grown its customer base and its footprint, including facilities in South Korea, China and Mexico. Today, we are happy to announce a fourth production facility right here in Europe, another step forward in the electrification of the vehicles. Our joint venture is investing in a new industrial complex in Miskolc, Hungary. This facility is set to produce e-motors and in the future expand into inverters and on-board chargers.
At the same time, we are creating more jobs in the region as we target start of production in 2026. Sustainability is a key component in Magna and LG's shared mission. This latest step highlights our confidence that together we are supporting automakers in the EV market, while creating economic opportunities that drive innovation and power a more sustainable future. We are delivering better mobility because it matters - stay tuned for more to come.
Thank you. Back to you, Areum. Thank you Diba.
At LG, customer value has been, and will continue to be, our primary focus. Customer value anchors our business. It is what motivates us. It is what drives us forward. It is what helps us stay true to our mission of "Driving better future mobility". Thank you all for your time. I hope to see many of you early next year, where you'll be able to see, touch and experience many of the innovations introduced here today.
Thank you for your attention. LG wish you a interesting and inspiring time at the IAA.