LG Electronics' unexpected decision: the company is phasing out production of charging stations for electric cars, predicting stagnation in this market
Despite the rapid growth in the popularity of electric cars, not all companies see long-term prospects in this segment. Korean industry giant LG Electronics announced its exit from the business of producing charging stations for electric cars.
Here's What We Know
LG Electronics believes that long-term demand stagnation looms ahead in the electric vehicle market and believes it is necessary to exit the production of charging stations in time.
The HiEV Charger subsidiary will be liquidated and its employees will be employed in other LG Electronics divisions. However, the company will continue to fulfil its obligations to service the stations, according to existing contracts.
Recall, LG entered the market of charging stations and devices for electric cars in 2022 and for this purpose bought the company HiEV Charger (formerly known as AppleMango). It wasn't until January 2024 that the Korean company opened a new plant in Texas, allowing it to enter the US market.
LG Electronics now sees great promise in the HVAC industry, although for a few more years it had high hopes for charging stations for electric cars.
Source: ithome
