Samsung Is Planning A Foray Into Car Industry

Samsung Electronics on Wednesday announced plans to set up a team that will focus on the development of automotive components and technology are driving independent and entertainment system. Samsung pointed Kwon Oh-Hyun, a deputy leader who has long been managing the electronic components business of Samsung, as the supervisor of the new team, as reported by Mashable.com, Friday, December 11, 2015.

Some companies Samsung already has a relationship with the automotive business. Samsung SDI supplying lithium-ion batteries to make electric cars. Meanwhile, Samsung Electro-Mechanics, which is already producing electronic components of vehicles since last year, said their company would enter the automotive components business.

Samsung Electronics was still closed about his plans in the automotive sector until now.

In the 1990s, Samsung could have a car manufacturing business under the leadership of Lee Kun-hee, a sports car enthusiast. However, the automotive business was bankrupt after the financial crisis struck Asia about 1997.

Some technology companies began to develop the business towards the automotive technology business and some of them even have formed partnerships with automakers.

Google, for one, has been testing a vehicle that can run itself without the driver for six years. Apple has developed software for the car called CarPlay. This system allows the use of the iPhone to operate the in-vehicle entertainment systems.

On Wednesday, The Wall Street Journal reported that Chinese Internet search engine, Baidu, is also working to develop this standalone car. Baidu plans to have a vehicle that can drive itself within three years.

The announcement came while Samsung under pressure to find new business to offset the fall of the profits from sales of the smartphone business.

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