TOKYO (Reuters) – Japan’s Panasonic Corp said it will boost domestic production of washing machines and other appliances to half of its overall output from about a third should the yen weaken to 105 to the dollar, reversing a strategy of shifting production offshore.
At 105 yen or lower it will cost less for Panasonic to build appliances it sells in Japan rather than importing them from factories abroad, Kazunori Takami, the head of the appliance business, said at a press briefing in Osaka.
Since becoming president of Panasonic a year ago, Kazuhiko Tsuga has made profitability a priority for Takami and other division leaders.
A weakening yen has already spurred some foreign companies including Apple Inc to raise prices as the currency shift eats away at their income in Japan.
(Reporting by Reiji Murai; Writing by Tim Kelly; Editing by Stephen Coates)
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