After two years of courting JVC and Kenwood have finally revealed what their long-awaited merger will deliver with an announcement that their primary focus will be the car electronics business, a market that will take them smack up against Pioneer Electronics.
After two years of courting JVC and Kenwood have finally revealed what their long-awaited merger will deliver with an announcement that their primary focus will be the car electronics business, a market that will take them smack up against Pioneer Electronics.
The merged Companies who have both staggered from one crisis to another have also said that their new Company will be split into various business segments including car electronics, home mobile, home and portable audio, TVs and camcorders and professional systems, including wireless communications and professional audio and video.
TWICE in the USA say that the publicly traded holding company, which wholly owns JVC and Kenwood, said its “goal is to quickly maximize synergies in the car electronics business, from which JVC Kenwood expects the greatest synergies from their management integration.”
Between now and the end of the Japanese financial year in March 2009 th3e merged Companies have forecast car electronics would account for 18 percent of the two brands’ sales, with the home/mobile segment accounting for 43 percent. Professional systems would account for 14 percent, with entertainment accounting for 9 percent. Other businesses would account for 16 percent of sales.
TWICE said that In the newly created home/mobile segment, the company called its camcorder business “highly profitable” and described its TV and home audio businesses as “unprofitable.” As a result, the home audio business will accelerate recently launched restructuring efforts, which have included the elimination of unprofitable models, collaborative efforts to improve cost competitiveness, lineup improvements though joint-development efforts, and a stepped-up focus on the profitable A/V accessories business. The intent is “to quickly develop the home and mobile business segment as an earnings-creating segment,” the company said.
