Matsushita Electric Industrial Co. said Tuesday it will shut down its Argentine sales subsidiary, Panasonic Argentina S.A. (PARSA), effective Monday.
The operations will be taken over by a new Argentine sales office to be established April 1 by Panasonic do Brasil Ltda., Matsushita's production and sales unit in Brazil.
"This move is part of Matsushita's organizational restructuring in South America in response to a sudden and severe contraction of the market in Argentina, caused by the economic turmoil there that began in late 2001," Matsushita said in a statement.
The move will have no material effect on Matsushita's consolidated or parent-only financial position or performance, the statement said.
PARSA, located in Buenos Aires, was founded in April 1980 to import and sell television sets, audio equipment, telephones and other appliances. In the year that ended March 31, 2002, it incurred a net loss of $3.36 million on sales of $25.59 million.