Pioneer Looks For Deal On Car Navigation

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Pioneer who last month walked away from the plasma display market is believed to be in talks with Mitsubishi Electric, Alpine Electronics and Clarion over thesetting up of a common manufacturing operation for car navigation and auto entertainment systems.Pioneer who last month walked away from the plasma display market is believed to be in talks with Mitsubishi Electric, Alpine Electronics and Clarion over the manufacture and sale of car navigation and auto entertainment systems.
One option that the three Companies are discussing is the development of a single manufacturing operation funded by all three entities according to Pioneer sources.
This will allow each Company to operate separately in the market while utilising a common manufacturing operation a move which analysts say will deliver significant benefits to all three Companies. 
A U.S Pioneer spokesperson who spoke to TWICE said, “Pioneer does have an existing technology collaboration relationship with Mitsubishi on software development for car navigation systems, and they plan to continue this relationship.  As for the possibility of working with other companies, each has its own expertise, and they would consider working with each other to maximize efficiency if it makes good business sense.”
She added, “Pioneer has clearly stated that they will pursue all possible options to improve efficiency, including collaboration with other companies.  But at this stage, they have no announcement to make.”
Pioneer recently said it will exit the TV business by March 2010 and focus on car electronics and other home electronics businesses.
Other companies are forming new alliances in car navigation and electronics as the car audio aftermarket has been in decline.
TWICE also reported that JVC and Kenwood merged under a holding company in October, and prior to that Clarion was purchased by Hitachi.   Also Blaupunkt USA was recently purchased from Bosch by the German holding company, the Aurelius Group.

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