Panasonic Corporation PCRFY has appointed Yuki Kusumi as CEO of its automotive business replacing Tesla Inc TSLA supporter Kazuhiro Tsuga, Reuters reported Friday (Tokyo time).
What Happened: Kusumi will take over from Tsuga, who is considered to be a supporter of Tesla CEO Elon Musk, on April 1.
Kusumi oversaw the launch of a joint battery venture with Toyota Motor Corporation TM in April.
The change in leadership occurs at a time when robust sales of Tesla’s electric vehicles have enabled Panasonic’s battery business to rake in profits.
Why It Matters: The $1.6 billion partnership with Tesla was part of the strategy that Tsuga used to shift Panasonic away from low-margin consumer electronics to batteries, factory machines, and components, noted Reuters.
The focus on business customers has reportedly yet to deliver stable profits for the Japanese company whose businesses range from bicycles to face steamers.
Panasonic also said it would change to a holding company structure in April 2022 to streamline the responsibilities of each of its divisions, as per Reuters.
Price Action: Panasonic OTC shares closed 3.02% lower at $9.96 on Thursday. On the same day, Tesla shares closed nearly 1.3% lower and fell 0.18% in the after-hours session.
Related Links:
Panasonic Not Worried About Tesla's Battery Expansion Plans
Tesla Nevada Battery Capacity To Rise 10% As Panasonic Adds New Production Line
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