Panasonic to stop TV production in Mexico as Q2 sales tumble on trade gloom
TOKYO, NNA - Panasonic Corp. has decided to halt the production of flat-screen televisions in Mexico as global sales of TVs tumbled.
Chief Financial Officer Hirokazu Umeda told reporters on Thursday that the company had begun the process of shutting down the production plant in Mexico, according to Panasonic.
The shutdown would be completed by the end of this year, Umeda was quoted as saying.
All 360 workers at the factory will lose their jobs, but Panasonic will maintain its sales department in Mexico, a Panasonic spokeswoman said Friday.
The Osaka-based company reported a 13.2 percent decline in net profit to 49.7 billion yen ($464 million) and a 5.9 percent drop in revenue to 1.89 trillion yen in the April-June quarter.
Umeda said the company might consider other measures to improve productivity at other factories.
“The competition in Europe and Asia is getting tougher,” he said.
Panasonic sold some 6 million TV sets globally in 2018, including 200,000 shipped from Mexico.