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Panasonic Announces Business Restructuring and Growth Strategy for Its Motor Business
November 02, 2009 -- OSAKA, Japan, BUSINESS WIRE --
Panasonic Corporation (Panasonic)(NYSE:PC) today announced that the Company will restructure Motor Company, its internal division company, to strengthen its management structure for achieving further growth. In April 2010 (planned), Panasonic reorganizes and integrates Home Appliance and Automotive Motor, and Industrial Motor Businesses to Home Appliances Company (HA), and transfer Information Equipment Motor Business to Minebea Motor Manufacturing Corporation (Minebea Motor). Therefore, Motor Company will be dissolved.
1. Purpose of Business Restructuring
Panasonic aims for further strengthening both finished product manufacture and device businesses by vertically integrating Home Appliance and Automotive Motor, Industrial Motor businesses, and finished products, which are expected to create the mutual synergy effects.
The Company will transfer the Information Equipment Motor Business to Minebea Motor, which is a joint venture company between Panasonic and Minebea Co., Ltd. (Minebea), and which has a steady competitiveness in its field, aiming to establish a solid management foundation of Motor business.
2. Details of Business Restructuring
(1) The Home Appliance and Automotive Motor, and Industrial Motor Businesses
Panasonic has achieved to see the fruits of efforts in motor business by implementing large scale management reforms since the second half of last fiscal year. The Company reorganizes and integrates Home Appliances and Automotive Motor business to HA for aspiring to survive not only in Motor business but in home appliances business, amid global recession and ever-intensified competition triggered by the financial crisis. Therefore, Panasonic expects its synergy effect and further strengthening of its business structures.
By vertically integrated finished product manufacture and device businesses, the Company pursues; making-decision more speedy, strengthening product competitiveness by integrating black box technology of both businesses, accelerating manufacturing and development at global optimal locations, and strengthening cost competitiveness.
Regarding its sales division, the Company will build the structure to strengthen the relation with customers, and aims to expand its business through expansion of energy-efficient home appliances with worldwide environmental regulations, developing industrial solutions by collaborating with controller manufacturers, and creating new automotive motor unit business based on Panasonic group's comprehensive strengths.
Panasonic will liquidate Panasonic Motor Matsusaka Co., Ltd., which is Panasonic's subsidiary company, for accelerating manufacturing at global optimal locations after transferring compact AC geared motors and industrial brushless motors to Panasonic Motor (Zhuhai) Co., Ltd.
(2) The Information Equipment Motor Business
Further growth in demand is expected in new product applications, such as digital home appliances and information terminals. Motor Company, however, has been focusing on businesses for document fields and for finished products of group companies due to the extremely-severe cost competition.
Toward further growth, Panasonic will transfer the information equipment motor business to Minebea Motor and establish a robust managerial foundation through fundamental reform of its fixed-cost-structure. The Company will also aim for further expanding business by strengthening synergy with Minebea group.
According to the business reforms for employees engaged in the corresponded business, Panasonic put the priority on job security, such as transferring to HA, being employed by Minebea Motor group companies and promoting job-placement assistance. Hereafter the Company will pursue consultations between labor and management in full respect of the relevant employees.