Japanese electronics giant Panasonic has named the head of its loss-making TV division as its new president. Kazuhiro Tsuga will replace Fumio Ohtsubo, who becomes chairman.
Panasonic recently warned it is heading for a loss for the current financial year that is the equivalent of more than seven billion euros. That is due to restructuring costs and loses from its acquisition of rival Sanyo Electric.
The group also pledged to get the TV division back on track quickly. Tsuga said he will focus on bolstering profitability: “I won’t pursue volume, and will prioritize profits. I will consider ways to bring the TV business back to normal within one to two years.”
Ohtsubo, who is vacating the president’s office aged 66, rose to the top six years ago, but under his leadership Panasonic shares have slumped by more than two-thirds. That is double the decline on the benchmark Nikkei average over the same period.
As chairman he will still be in a position of influence. It is the role that outgoing presidents in Japan usually take.