HAR Harman International Industries, Incorporated

By Tim Higgins 

LAS VEGAS -- Samsung Electronics Co., on track to close its $8 billion purchase of Harman International Industries Inc. later this year, is already making plans to use the automotive supplier to expand markets for its display panels, computer chips and future 5G wireless technology.

The electronic firm's strategy chief, Young Sohn, and Harman Chief Executive Dinesh Paliwal, at an interview Friday at the CES 2017 technology expo, laid out a vision for how they can use each other's strengths to create an autonomous car platform that could be sold to auto makers, either as a total system or piecemeal.

"Integration will start as soon as the close happens," Mr. Paliwal said. "Planning is progressing very well."

The acquisition of Harman will instantly make Samsung, already a leader in chips and display panels, a player in the auto industry. Mr. Sohn said the company considered growing its auto business, which already sells batteries to car makers such as Nissan Motors Co., but decided it would take too long.

"We think automobiles of tomorrow will use a lot more display technology than the way it's done today," Mr. Sohn said. "That footprint is an opportunity for us, and Harman is involved in integrating all of those things to customers -- so we get very excited about that."

In Las Vegas, Harman displayed a concept for an in-vehicle experience intended for self-driving cars which incorporates video screens where windows would traditionally be and the company's high-tech speakers. Inside the vehicle, the 360-degree displays let the user feel like he or she is in concert hall or movie theater or conduct business meetings with on-screen videoconferencing. While the system displayed used Harman's speakers, the company didn't yet have a working real-world display.

That could change with Samsung, Mr. Paliwal said. "The window would not be simple glass...that would be Samsung display" screens, he said.

Write to Tim Higgins at Tim.Higgins@WSJ.com

(END) Dow Jones Newswires

January 06, 2017 19:10 ET (00:10 GMT)

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