Japan's Panasonic is joining the growing group of corporations that shift some production to China.
According to Kyodo News, Panasonic is teaming up with Beijing Automotive Group to manufacture some electric car parts/components in China, perhaps as a response to being forced to share its battery production with EV-maker Tesla in Nevada.
As Kyodo News explains:
"Panasonic Corp. and Beijing Automotive Group plan to jointly set up a company later this year to produce electric vehicle parts in China..."
The deal was reportedly inked back in May and will see the two corporations set up a factory in Tianjin, a major city in northeast China.
Kyodo News adds:
"Beijing Automotive is expected to take a stake of about 54 percent of the new company, with the remaining roughly 46 percent to be contributed by Panasonic’s unit overseeing Chinese operations, according to the officials."
It's believed that the factory will focus mostly on producing HVAC systems for electric vehicles, but other components may be built there as well.
Source: Kyodo News