JVC, Kenwood to merge development, production of home audio
Press Trust of India / Tokyo Jun 11, 2009, 16:32 IST
JVC Kenwood Holdings Inc. Today said it will merge in July the home audio operations of its two wholly owned subsidiaries in the areas of development and production to cut costs and combat sluggish demand.
Victor Co. Of Japan, known as JVC, and Kenwood Corp. will sell their products separately under their respective brands. But JVC will take charge of all other operations including product planning and marketing as they seek to stem losses in their home audio businesses.
The two firms will also consolidate production to JVC's plant in Malaysia at an undetermined date and increase outsourcing.
JVC and Kenwood currently have three production sites including two in Malaysia and one in Yamagata Prefecture in Japan where they make car audio equipment, wireless devices and other audio products.
In addition to cutting costs in procurement of materials, JVC and Kenwood hope to accelerate product development through the integration while strengthening their individual brand images, a JVC Kenwood Holdings spokesman was quoted as saying by Kyodo news agency.
The two companies are seeking to get their loss-making home audio businesses into the black for the current business year ending next March.
JVC and Kenwood created JVC Kenwood Holdings last October to integrate their operations under a holding company.
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