November 25, 2024

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[THE INVESTOR] Harman International, the US audio giant that was recently acquired by Samsung Electronics, will supply a new Android-powered car infotainment system to General Motors from this year.

The planned supply comes after GM and Harman inked a US$900 million deal in 2012 to jointly develop a new-generation infotainment system. 

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Harman will replace the current suppliers such as LG Electronics, Panasonic and Bosch, becoming the sole supplier for new GM cars.

“Harman’s new infotainment system will be fitted in GM’s vehicles from this year,” a Samsung official was quoted as saying. He declined to reveal the exact vehicle models and the supply volume.

“Supplies to GM will become an important revenue source for Harman for the next three years.”

Industry watchers say the fresh deal between Harman and GM could open up new opportunities for Samsung that makes chips, displays and other electronic parts for cars but has struggled due to the automotive industry’s high entry barriers.

Harman currently partners with a slew of carmakers, including Toyota, Volkswagen, Hyundai-Kia, Fiat Chrysler and Audi.

Market research firm IHS forecast Harman could secure about 10 percent share in the global telematics and infotainment market by 2022.

In the meantime, Korea’s Fair Trade Commission, on Feb. 27 approved Samsung’s acquisition of Harman, saying the integration does not limit fair competition within the industry.

Following Harman shareholders’ approval on Feb. 17, the deal has been approved by antitrust authorities in six nations, including the US, while Samsung is waiting for final approval in three other countries.

By Kim Young-won (wone0102@heraldcorp.com)