Samsung Electronics plans to establish an automotive electronics division, which will initially focus on building its competencies in infotainment and autonomous driving vehicles. In its early stage, the division will focus on infotainment and an autonomous driving system, and strengthen cooperation among affiliates, the company said. The operation will be headed by Executive Vice President Jonghwan Park and overseen by Vice Chairman & CEO Oh-Hyun Kwon. Park will coordinate participation of the group’s affiliates such as battery maker Samsung SDI Co. and software services provider Samsung SDS Co.

The move came as Samsung, whose business portfolio ranges from handset, semiconductor to refrigerator and other home appliance, is suffering a setback in its mainstay smartphone business.

Samsung formed an alliance with Volkswagen AG’s Audi unit to provide memory chips for the company’s dashboard, infotainment and advanced driver assistance applications, the South Korea-based company said last month.

Global automakers are rushing to produce high-tech vehicles such as electric cars equipped with infotainment systems and wireless networking.

Samsung's rival, LG Electronics, has already launched a similar business division called the Vehicle Components Business Division in 2013, seeking to nurture a new growth engine.

LG Chem Ltd., the group's chemical unit, had forged a series of deals with the world's major carmakers such as GM, Hyundai Motor Co. and Ford Motor Co. to provide batteries for their electric vehicles.

Annual Reorganization plan

Samsung Electronics also announced its annual structural reorganization to respond to business uncertainties while maintaining its three business divisions namely IM (IT & Mobile Communications), CE (Consumer Electronics), and DS (Device Solutions).

The company newly appointed the Head of the Digital Appliances Business and heads of the Mobile R&D Office for the Mobile Communications Business.

• Byungsam Suh, Executive Vice President, Head of the Digital Appliances Business
• Injong Rhee, Executive Vice President, Head of Software R&D, Mobile Communications Business
• Tae Moon Roh, Executive Vice President, Head of Hardware R&D, Mobile Communications Business

In addition, the Visual Display Business established an AV business team, and the Mobile Communications Business established Mobile Enhancing team focusing on wearables and mobile-related accessories.

In response to the growth of online channel sales, the company is establishing online operations teams in Korea and Southwest Asia. It will also create dedicated online organizations within key business units.

In addition, the company strengthened its product planning and R&D organizations with a focus on emerging markets. A product strategy center was established in China with the aim of creating an end-to-end product planning and R&D platform for locally developed products. The company will also expand its local product planning and R&D functions in India.