Pioneer is to quit its loss-making flat-screen television
business in a sweeping overhaul of its operations, the Nikkei
business daily reported on Saturday.
The company had planned to end in-house production of plasma
panels by the end of March and fit TVs with Panasonic panels
instead. But, faced with worsening profit margins amid the
global economic downturn and a stronger yen, which hurts
exports, it has decided to end TV production altogether, the
Nikkei newspaper said, without naming sources.
Pioneer had been restructuring its troubled plasma television
operations, shedding hundreds of jobs and shutting a domestic
plant last year. Pioneer will also spin off its loss-making DVD
player operations to a new company to be set up with Sharp
this year, the Nikkei said.
Pioneer today has commented on the newspaper's report, saying
that the it has not yet made any official announcement on its
reconstructing plans. The japanese company is expected to
announce changes in its business in the 12th of February.