Panasonic Ramps Up Spending – Looks To Become Tier 1 Automotive Supplier
According to Japanese news outlet Nikkei, “Panasonic will begin strategically investing in new sectors a year earlier than planned, with an eye on bulking up overseas,” President Kazuhiro Tsuga stated.
Basically, this is all part of a massive restructuring plan at Panasonic,which began a couple of years ago. Panasonic’s goal is to put an end to the financial bleeding ($6.5 billion loss reported in 2013).
“Starting next fiscal year, we’ll conduct strategic investment separate from our capital investment, and we won’t put a cap on it. Mergers and acquisitions are also a big option for us.”
“If we try to grow only in our existing fields, we’ll only be able to raise consolidated sales to around 8 trillion yen.”
“When we do strategic investment, we’ll likely make acquisitions of over 100 billion yen.”
On the automotive front, Panasonic’s president stated:
“The mountains we must climb are housing and automobiles. We will not climb mountains well-known to the electrical industry. We will supply low-cost, high-quality housing in Asia, and we’ll seek a partner to become a tier 1 supplier in the automotive sector.”
Lastly, Panasonic is hoping to expand its presence in markets outside of Japan. It will forge direct dealing with automakers and will tailor automotive products specifically for the markets in which they’ll be sold.
Part of Panasonic’s future lies squarely on the success of the Tesla gigafactory, a topic that president Tsuga didn’t discuss.