Profit Samsung bypasses Ford, Renault, Hyundai and Volkswagen combined

3 October 2017

A high probability that soon the Koreans will want to self-produce cars

Today Samsung Group is one of the largest companies in the world. In addition to Samsung Electronics, which holds a dominant position in several sectors of the economy, the industrial giants that produce ships, and military equipment. Experts believe that very soon Korean brand will be released on the car market. Traditional producers in this case not be good.

Formally, Samsung has long been released of the car, because in South Korea since 1993, sold cars under this brand. However, this division bears the name of Renault Samsung Motors, and it belongs to Koreans only 19.9 % (the rest is owned by Renault). Moreover, the entire range of this brand is borrowed from Renault and Nissan.

However, if Samsung seriously interested in the car market, it is unlikely to build alliances with traditional players, and there are several reasons. First, Samsung SDI is one of the world's largest manufacturers of traction batteries. Second, more recently, the Korean company was bought by Harman, a manufacturer of acoustics, including automotive.

Another factor is the rich experience in electronics development for various sectors of the economy. This will help "Samsung" to create their own unmanned system, and without it, as you know, in the near future, no cost, no car.

In 2016 Samsung was more profitable than Ford, Renault, Hyundai and Volkswagen combined. Against this background, it is unlikely that someone still doubt that the Korean giant will not be able to produce its own line of electric cars. Moreover, with its resources it is easy to "crush" almost every car company in existence today.

The other question is whether they want Samsung to do it. The electronics brings him fabulous sums, while margins in the automotive business far below. Many brands decades can work in the negative (what is an example of Opel, which brings losses for 20 consecutive years, and this is a large German company). It is likely that Samsung will increase its presence in the world, but as a supplier of components. This also can be attributed to the development of the autopilot: the manufacturer can sell the finished complexes and earn more than the production of its own machines.