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Wednesday, January 30, 2008
JVC, Funai to Partner on LCD TV Production


Japanese electronics makers JVC and Funai Electric Co Ltd will jointly develop and supply LCD televisions, the latest move as the sector consolidates in quest of economies of scale.

Price falls in liquid crystal display TVs have slowed, but firm panel prices still squeeze makers such as JVC and Funai, struggling to make it in markets dominated by giants Samsung Electronics and Sony.

JVC, which is set to integrate with Kenwood, would benefit from Funai's low-cost production model, while Funai would gain from JVC's global brand and technology, Funai Executives announced today.

Starting in February, Victor Co of Japan Ltd (JVC) will supply liquid crystal display TVs made at a plant in Mexico to Funai, which will sell them under its own brand in North America. JVC will market LCD TVs in Europe produced by a Funai plant in Poland starting between April and September.

The two plan to develop LCD TVs together for launch during the business year starting in April, and may jointly procure supplies and consolidate their logistics networks and maintenance services, they said.

Kenwood Corp and asset manager Sparx Group jointly acquired a combined 30 percent stake in JVC in August, taking the loss-making unit off Matsushita Electric's consolidated accounts.

More information is available here.


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