Pioneer New Plan

The company plans to concentrate on car electronics as itsmain business while continuing its home electronics activities inthe audio/visual, DJ equipment and cable TV set-top box sectors. Ithas already said it will leave the plasma TV business.

 

Pioneer will develop car electronics with Mitsubishi Electric,including hardware and software for car navigation systems andother audio-visual systems for use in automobiles. The twocompanies have already worked together since 2002, and havecodeveloped car navigation software.

 

Pioneer has also agreed to form a joint venture with ShanghaiAutomotive Industry Corp. to develop and sell intelligent transportsystems and car electronics in the Chinese market, it said.

 

On the financial front Pioneer said it needs to raise about¥40 billion to implement its medium-term business plan. It willpursue various cost-saving measures and has received additionalloans from its banks, it said. Pioneer agreed to sell a stake inthe company to Honda for ¥2.5 billion, and continues to look atother financial partnerships.

 

Pioneer has already announced plans to form a joint venturewith Sharp in the optical disc business