Panasonic, Tesla to scrap solar panels partnership
Panasonic is taking out of its partnership with Tesla to produce solar power panels at a factory in NY state, the Japanese electronics maker said Wednesday.
Panasonic's production at the factory in Buffalo will end by May, with an exit by September, it said in a statement. The decision is to streamline the business's global solar energy operations, it said.
Panasonic will continue making batteries for Tesla's electric vehicles in another factory in Nevada, it said.
Panasonic also quoted Tesla as saying that the move won't affect Tesla's solar business plans.
Panasonic will also continue selling solar panels under its brand in the U.S. through its distribution channels, it said.
Both companies' agreement to focus on solar energy was announced in 2016.
Panasonic will offer you severance packages to employees at the Buffalo plant. Tesla will hire as many as possible of those who wish to keep working there, according to Panasonic.
Tesla didn't immediately react to requests for comment.
"Your choice to transition away from U.S. solar manufacturing in Buffalo aligns with this global solar strategy," said Panasonic executive Shinichiro Nakajima.
Panasonic is a significant manufacturer of home appliances, such as washers and refrigerators, but its operations include services and products for businesses.
Tesla, located in Palo Alto, California, leads the world in electric vehicle sales.
Competition from cheaper Chinese manufacturing of solar elements has posed a problem for Panasonic since it strives to reposition itself for future growth.
Source: japantoday.com
