Japan’s Pioneer in Talks with Firms to Seek Tie-Up

August 9, 2018

Tokyo- Struggling Japanese car electronics maker Pioneer Corp. said Thursday that it is in talks with companies including automotive parts maker Calsonic Kansei Corp. to seek a tie-up.

Pioneer made the comment after media reports said it has approached Calsonic Kansei and others in hopes of forming a capital and business alliance to secure product development funds and rebuild its operations.

Informed sources have said Pioneer aims to choose a partner by autumn.

Pioneer posted a group net loss for the second straight year in fiscal 2017, as it suffered ballooning product development costs to deal with a change in the market environment for car audio and navigation systems following the spread of smartphones.

Announcing its business results for April-June this year on Monday, Pioneer noted "uncertainties" about its ability to continue as a going concern.

Pioneer needs to repay 13.3 billion yen in loans to banks by late September. But it has not secured refinancing agreements from them, the sources said.

Pioneer hopes to present a tie-up plan and reconstruction measures to banks to avoid a financial crunch, according to the sources.