Victor Co. of Japan will promote Senior Managing Director Kunihiko Sato to the post of president in late June, replacing Masahiko Terada, company officials said Wednesday.
Terada, 62, who was sent from Victor’s parent, Matsushita Electric Industrial Co., in 2001, will leave the board to take responsibility for JVC’s continued poor business performance, the officials said.
Victor, better known as JVC overseas, will formally announce the appointment later in the day along with a business plan for the current business year through next March 31, the officials said.
Sato’s two predecessors were from Matsushita, which has a 52.4 percent stake in Victor, a pioneer of VHS-format videocassette recorders.
With the appointment of Sato, 62, two other JVC board members from Matsushita are also expected to step down from their posts.
Matsushita, the maker of Panasonic-brand electronic products, is in talks with U.S. investment fund TPG on a possible sale of JVC.
Matsushita and TPG have been trying to sort out conditions for the selloff, which would be the first major acquisition of a Japanese consumer electronics maker by a foreign investment fund.
Sato, who joined JVC in 1968 and has long been responsible for global operations, is said to be taking the helm of JVC even after the parent company and the investment fund wrap up their negotiations.
Terada implemented aggressive payroll cuts and restructuring measures after taking over. But the Yokohama-based company has so far had no luck in coming up with hit products.
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