Will it be dissolved? Panasonic's latest response: It is a restructuring!

日本电子巨头松下控股株式会社近日宣布重大重组计划。

According to media reports, Panasonic will dissolve "Panasonic Corporation," which is responsible for white goods, air conditioners, lighting, and other businesses (hereinafter referred to as "Panasonic Electric"), and split it into three independent subsidiaries. In addition, Panasonic stated that it will consider selling its TV business as part of the group's restructuring plan to accelerate decision-making and focus on areas with greater growth potential, such as AI data centers.

"Panasonic Corporation" is a highly important subsidiary of the Panasonic Group, primarily manufacturing home appliances, air conditioners, and lighting products. According to reports, Panasonic plans to dissolve "Panasonic Corporation" by the end of fiscal year 2025 and establish three new subsidiaries: the home appliance business will be consolidated into "Smart Life Company," the air conditioning and related businesses will form "Air Quality & Air Conditioning · Food Distribution Company," and the lighting business will be assigned to "Electrical Engineering Company." These names for the new operating companies are currently provisional, and management is still considering whether the "Panasonic" brand will be retained.

(Source: Panasonic Corporation)

It is worth mentioning that on February 6, Panasonic Holdings issued a new statement clarifying reports regarding the 'dissolution of Panasonic Corporation.' The statement said that on February 4, Panasonic Holdings Co., Ltd. held a briefing session on future group management reform. As a result, some reports emerged regarding the use of Panasonic's company name and brand that could cause misunderstanding. However, the content released on February 4 aims to restructure the single legal entity 'Panasonic Corporation' under Panasonic Holdings Co., Ltd., which is responsible for providing home appliances, residential equipment, and products and services for stores and offices, rather than dissolving the Panasonic Group.

It is reported that at the briefing session, Panasonic Holdings announced the key points of the group's management reform, originally described as follows: To break through the scope of the living business and create synergies in the solution areas of the entire group, Panasonic Corporation will be developmentally dissolved, and its branch companies will be transformed into business companies. Additionally, to focus the home appliance business on the home appliance market, a business company integrating the group's home appliance business will be established to achieve the reconstruction of the home appliance business.

Industry insiders stated: 'This reform is actually a restructuring of Panasonic Corporation within the Panasonic Group system, reorganizing the original Panasonic Corporation into three independent companies—Smart Home Appliances B2C, Fresh Air Air Conditioning Cold Chain B2B, and Electrical Engineering B2B. This clarifies the future development direction, gives confidence to Panasonic shareholders, and has led to an increase in the market capitalization of Panasonic Corporation stock.'

It is reported that this decision caused the stock price of Panasonic Holdings to rise sharply after the opening on Wednesday, with a gain of more than 11%.

In addition, Panasonic's existing business segments such as batteries and residential energy systems will continue to operate as independent subsidiaries. Panasonic stated that this spin-off model aims to make each business segment more agile in responding to market changes and prevent the difficulties of a single segment from dragging down the entire group.

Televisions were once Panasonic Electric Works' flagship product. This reform also includes adjustments to the TV business. Kazuo Yamada, Representative Director, President, and Group CEO of Panasonic Holdings, stated that the company will abandon its traditional television business and plans to sell it. However, besides selling, there may be other options; management is currently studying this. In the latest statement, Panasonic also indicated that regarding problematic businesses including the TV business, to achieve fundamental revenue structure transformation, the group is considering all possibilities, and as of now, no decisions have been made regarding matters such as sale or exit.

In recent years, Panasonic's share in the global television market has continued to decline, partly due to the rise of Chinese brands. For example, the rapid growth of domestic Chinese brands in the television market share has caused huge impact on Japanese TV manufacturers like Panasonic. In 2016, Panasonic stopped producing LCD panels for televisions independently and switched to purchasing from suppliers in South Korea and other places.

It is reported that Panasonic Electric Works was founded in 1917 by Konosuke Matsushita in Osaka, initially producing light bulbs and lamp holders. At first, the company had only three employees. After 108 years of development, Panasonic Electric Works has become a globally renowned home appliance brand, with a total workforce of 220,000 and operations worldwide.

In April 2019, the Panasonic Group established for the first time the China Northeast Asia Company, which integrates business and regional oversight functions. The headquarters is located in Beijing. Mr. Huang Zhongming, Director and General Manager of the Housing Space Division Lighting Business Oversight and Panasonic Electrical Machinery (Beijing) Co., Ltd., accepted an exclusive interview with China Light Network at the year-end, elaborating his profound insights into the development of the lighting industry, as well as the changes and future outlook of Panasonic Lighting. Interested friends can click to learn more: Exclusive Interview with Huang Zhongming of Panasonic Lighting | Yearly Review (Part Five)

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