qr-play-store play store

Panasonic's auto business to become the real driving force?

31 May 2017
No comments
554 views
Panasonic's auto business to become the real driving force?

Although Panasonic Corp. is an electronics company, it's becoming quite the rev head. The Japanese brand that's indelibly associated with televisions, audio equipment and microwave ovens now makes more money from auto parts than home appliances. In presentations to investors, the company divides its product portfolio into three business characteristics: high-growth, low-growth and low-profitable. At the top of that tree is automotive batteries, car cockpits and advanced driver assistance systems. The only non-vehicle segment enjoying management's high-growth optimism is air conditioners. On the low-profit rung is chips, LCD displays and solar panels.

 

 

Panasonic Automotive already ranks No. 23 on the list of top 100 global auto suppliers with estimated worldwide sales to automakers of about $10 billion in 2015. And that position is only likely to consolidate as its rechargeable-battery business expands alongside Elon Musk's ambitions. Panasonic is already a major lithium-ion battery supplier. But its joint venture with Tesla Inc., better known as the Gigafactory – the Japanese will be responsible for manufacturing the battery cells, while Tesla does more or less everything else – will soon vault the partnership into the new vanguard of large-scale rechargeable battery producers. The Japanese firm is currently under contract to supply rechargeable batteries to nearly 90 different car models, according to an investor presentation Tuesday, and hopes to make 750 billion yen ($6.8 billion) of revenue from the segment by 2019 – more than double last year's 363 billion yen.

 

 

The good thing about this business is that the auto industry moves far slower than consumer electronics, and such products tend to be highly individualized. This means steep barriers to entry and stable margins. So when it lands a client like Jaguar Land Rover, it should be able to keep it for quite a few years. Infotainment – putting audio equipment and navigation systems into other companies' cars – is likely to be the key here, with 27 billion yen of operating profit forecast for 2018 versus 6.6 billion yen from batteries.

0 0
Comments:
No comments found
Leave a comment
  • Jaw-dropping deals this Spring at RepoKar
    27 Feb 2017

    Spring is right around the corner! With melting snow comes rising car sales. Longer days and brighter sunlight mean it’s the season to think about the best used cars for spring; vehicles that allow you to appreciate blue skies, while getting a head start to summer. The sooner you decide on your dream car, the greater the possibility of finding the best deals.  At RepoKar, we want to be sure that you've got everything you need to start the season fresh with a smile on your face. That’s why we’ve prepared amazing, hassle free used cars, trucks, and SUVs for our fr...

    0 2
    18
    1039099 views
  • General Motors to lay off 1,100 workers
    06 Mar 2017

    General Motors promised us other things but that’s how it all turned to be, even if it said it will invest $1 billion in U.S. factories now it announced to temporarily cut off 1,100 workers in May as its Lansing Delta Township assembly plant in Michigan shifts production to Tennessee. Last year it added 800 jobs at its spring hill, Tennessee plant to build the new version of GMC Acadia SUV.  The Lansing plant will continue building the Buick Enclave and Chevrolet Traverse after it retools for a month. GM also has announced other U.S. factory cuts. U.S. President Donald Trump ha...

    0 0
    19
    105696 views
  • Subaru Ascent: the New Family Vehicle of the Year
    11 Sep 2018

              Did you ever doubt that Subaru won't produce anything new this year and would just improve other models? We have good news for you! Subaru Ascent's new 8-seat crossover rises above the crowd and tops the lists of the most expected crossovers in 2019.          With flexible seating for up to eight passengers, standard Symmetrical All-Wheel Drive, and up to 5,000 pounds of towing capacity, the family-sized 2019 Ascent makes every day an adventure. The appearance of the model corresponds to the classic image of a massive SUV and ...

    0 0
  • Ready For Fall: Buy A Car From RepoKar Online Auto Auction
    29 Aug 2018

    Summer has officially come to an end. It won’t be long before the weather goes from post-summer comfort to a little brisker and icky. A good car will help traveling more comfortable and more fun. RepoKar can help you get the car.  At RepoKar, you’ll find great autumn car deals for sedans, SUVs, and pickup trucks. As the nation’s largest online auto auction, RepoKar is available in all states and can be accessed from your computer or your phone. Here you will find vehicles at competitive and affordable prices. You'll also meet our helpful team of experts. We make...

    0 0
Search on the blog
Find us on

Last added auctions

2012 Ford ESCAPE
1485 views
19 photos
3,400.00
No bids
2012 Nissan MURANO
2679 views
13 photos
3,500.00
No bids
2000 Honda CR-V
2101 views
12 photos
1,200.00
No bids
2012 Mazda MAZDA3
2409 views
16 photos
2,500.00
No bids