LG Starts Up Car Design Company Feb 12, 2004

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The South Korea-based LG Group, which once tried to get into the vehicle assembly business, has started up a car design company.

According to South Korea’s Fair Trade Commission (FTC), LG CNS, an information technology service affiliate of LG Group, has established firm called Vehicle-Engineering & Solution Corporation.

It begins life with an initial capital with 200 employees, including temporary staff. It will be headquartered in Inchon and officially begin operations later this month.

“We are targeting overseas markets like Malaysia and Japan where total car design outsourcing industry is popular and flourishing. We believe that the automobile design business has high growth potential,” said Howard Yoon, a spokesperson for LG CNS.

Mr. Yoon said his company believes that outsourcing will find increasing favour among Korean automakers in the future.

“Simply put, VE&S Corp. will design car models and virtually all car parts on behalf of automakers,'' Mr. Yoon said. (Auto Asia)

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