"Main competitiveness in service and maintenance"
Core part warranty to be expanded up to 10 years
North America targeted special products to be launched
Complimentary warranty extension in European market under consideration

[Digital Times, Kim Eun] LG Electronics is aggressively hitching a drive for the US commercial air-conditioning market. In addition to introducing localized products, they also extended the warranty period for core parts such as compressors up to 10 years.

According to industry sources on April 24, LG Electronics recently introduced a commercial air- conditioner such as multi-V S 5 including a system air-conditioner in the United States. The existing warranty period was 5 years for key components and 7 years for compressors, but this time it has extended it up to 10 years. This is the first time to extend the warranty period for commercial air-conditioners to 10 years. LG Electronics is also expected to consider expanding the warranty period in Europe in the future.

LG Electronics increased the first free warranty period in the US market to 10 years as commercial air conditioners are not only products themselves but also services and maintenance as warranty and maintenance are core competitiveness. By expanding the warranty period for core parts, the company emphasizes the technological competitiveness of core parts and secures customer trust. At the AHR Expo, the world`s largest air-conditioning exhibition, LG Electronics has been introducing system air-conditioners such as Multi-V 5 and Multi V-Max, which are specialized in North American market.

Currently, the global air-conditioner market is about KRW 90 trillion, half of which is about KRW 45 trillion in the case of the system air-conditioner market. In the commercial air conditioner market, the domestic market share of Samsung Electronics and LG Electronics is only around 5%.

LG Electronics believes that commercial air-conditioners will account for 60% of total air conditioner sales this year, up from 50% last year.

"This year, we are focusing on the B2B market to increase the proportion of commercial air conditioners," said LG Electronics representative. "We are also pursuing B2B strategy for the company as it has the capability to provide services, maintenance, and installation as well.” He added.

By Kim Eun silverkim@


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