Going all in on EVs, Panasonic to sell stake in auto parts division to US firm
Arvind · Nov 23, 2023 12:30 PM
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Throwing at least most of its eggs in the EV basket, Panasonic is in talks to sell a stake in its Panasonic Automotive Systems (PAS) auto parts business to a US asset management firm as the company refocuses its plans firmly towards EV batteries and associated technologies.
In a recent statement, Panasonic stated it has signed a Memorandum of Understanding with Apollo Global Management which will see both parties continue discussions on an exclusive basis with an aim to conclude the deal by March 31, 2024.
Left: Panasonic digital instrument cluster developed for the Mazda CX-90, right: EV on-board vehicle charger
PAS is the company's division that produces on-booard chargers, motor-driven compressors, battery heaters, full-display meters, audio entertainment systems and even sensors for ADAS systems.
In divesting PAS, Panasonic plans to focus its efforts on three core EV technologies: batteries, which it currently supplies to Tesla; heat pump technologies for AC systems; and supply chain management software.
The business subsidiaries responsible for these three technologies are not up for sale.
According to the statement, Panasonic said, “As there is a rapid shift to electric cars and a significant change to vehicle architecture, the continued investment will be necessary to achieve sustained growth for the company, especially in software development and electrification, which continue to evolve and advance. Through this partnership, a growth story will be shared, and PAS will gain access to large and new financing opportunities, including for strengthening the development of growth businesses.”
Arvind can't remember a time when he didn't wheel around a HotWheels car. This love evolved into an interest in Tamiya and RC cars and finally the real deal 1:1 scale stuff. Passion finally lead to formal training in Mechanical Engineering. Instead of the bigger picture, he obsesses with the final drive ratio and spring rates of cars and spends the weekends wondering why a Perodua Myvi is so fast.
