Panasonic Stops Work In Several Factories

Panasonic has decided to act on the falling sales of its plasma TVs and the stiff competition facing its entry-level LCD TVs.  In a radical move, the company is set to suspend manufacturing in three of its five Japanese factories.

The director of Panasonic's French operations, Laurent Roussel, confirmed that production would now be focussed on just two sites: Amagasaki for plasma and the Humeiji plant, where we went behind the scenes last year, for LCD.

The move will have a number of direct effects:

- half as many plasmas will be produced, with numbers falling from 13.8 million units this year to 7.2 million in 2012

- smaller LCD TVs will be abandoned: no more 32'' and 37'' LCD TVs will be made, with Panasonic starting at 42'' with LED backlighting

- at the same time, much larger LCD TVs will be available, reaching 55'', a size previously reserved for plasma TVs

- a new focus on LCD TVs with a new range unveiled at January's CES.  They're set to be a lot slicker than the current offering with a totally new design.

''The aim is to adjust production levels to meet demand.  Plasma sales are falling, and so we're reducing the number we make and concentrating on quality.  Our plasma TVs will still be the best,'' explained Roussel, saying that that the success of the VT30 series in Europe more than justifies the firm's commitment to plasma: ''the VT30 series has a reputation for producing the best picture quality.''

Panasonic has some ambitious plans for next year!

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