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LG Can’t Find a Buyer for Smartphone Business
LG Electronics Inc. is still mulling the fate of its money-losing mobile business, amid rumors that the unit will shut down instead of being sold. LG's mobile business has been in the red since the second quarter of 2015 and has accumulated operating losses reached nearly 5 trillion won ($4.4 billion) thru 2020. "LG … negotiations with others over the sale of the unit has not progressed," an official in the mobile industry said on condition of anonymity. "It seems that selling its entire mobile business appears to be difficult at this moment, as is the partial sale of the unit." LG was in negotiations with Vingroup of Vietnam and Volkswagen of Germany but could not make notable progress, according to industry observers. With LG's mobile business restructuring plan apparently running in place for two months, industry trackers are now speculating that the company is leaning more toward the option of closing the mobile unit. Despite reports of some activity, the "Rainbow" and "Rollable" projects reportedly ceased with LG looking for ways to utilize its existing mobile business workforce. LG previously said those in the mobile unit will keep their jobs by moving to vehicle component solutions division, where LG is trying to beef up its size for future growth.
Source: Korea Herald
LG Electronics Inc. is still mulling the fate of its money-losing mobile business, amid rumors that the unit will shut down instead of being sold. LG's mobile business has been in the red since the second quarter of 2015 and has accumulated operating losses reached nearly 5 trillion won ($4.4 billion) thru 2020. "LG … negotiations with others over the sale of the unit has not progressed," an official in the mobile industry said on condition of anonymity. "It seems that selling its entire mobile business appears to be difficult at this moment, as is the partial sale of the unit." LG was in negotiations with Vingroup of Vietnam and Volkswagen of Germany but could not make notable progress, according to industry observers. With LG's mobile business restructuring plan apparently running in place for two months, industry trackers are now speculating that the company is leaning more toward the option of closing the mobile unit. Despite reports of some activity, the "Rainbow" and "Rollable" projects reportedly ceased with LG looking for ways to utilize its existing mobile business workforce. LG previously said those in the mobile unit will keep their jobs by moving to vehicle component solutions division, where LG is trying to beef up its size for future growth.
Source: Korea Herald
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