The economic tide has turned red for the Japanese TV makers. Major firms like Panasonic and Sony were hit by heavy losses over the past year due to a strong yen, intense competition from South Korean TV makers, and a sluggish consumer demand. And now it seems that Toshiba Corporation is taking drastic measures to turn the odds in their favor as well.
The company recently revealed that they've stopped manufacturing Regza LCD televisions in their lone domestic factory located at Fukaya in the Saitama Prefecture, although production will continue in Toshiba's factories based in China, Egypt, Indonesia, and Poland. The robust yen has lead to high exports costs, resulting in less competitive units in foreign markets.
According to HDTV's report, however, a Toshiba spokesman denied that the "unfavorable currency exchange condition has played a major role in influencing the final decision". Despite ceasing production in Japan, Toshiba's CEO Mr Norio Sasaki reiterated that the company intends to continue with its TV operations, and that the shutdown of its LCD TV arm is a process the firm needs to undertake to restructure their TV division and to avoid the red zone eventually. The report states that the Japanese maker's domestic TV arm suffered a 50 billion yen loss a year ago. Toshiba also plans to slash its manufacturing output of Regza LCD TVS to 60 percent by 2013.