December 25, 2009
Use of integration effects for marketing and sales activities in growth markets
Kenwood and JVC Sales Units in Brazil Will Be Merged With Efficiencies
The JVC Kenwood Group, in order to expand and strengthen the Car Electronics consumer business in Brazil, a growth market, will establish a new sales company, JVC KENWOOD do Brasil Comércio de Eletrônicos Ltda., on January 1, 2010, deriving from the merger involving the Brazilian sales companies of Kenwood Corporation (Kenwood) and Victor Company of Japan, Limited (JVC).
1. Purpose of merging the Brazilian sales companies
The JVC Kenwood Group regards the Car Electronics business — the business that both Kenwood and JVC are involved in — as the mainstay business in which integration effects can be brought out the most. Accordingly, it has integrated the marketing, product planning, development, procurement and production functions relating to car electronics of Kenwood and JVC into J&K Car Electronics Corporation, a joint venture between Kenwood and JVC, thus deepening business integration.
As a result of these efforts, in the field of Car Electronics for the consumer market, JVC Kenwood has increased the market share for Kenwood and JVC brands mainly in North America and Europe, and established its position as a global leader.
From now on, JVC Kenwood will aim to increase sales and profits in Brazil, where auto sales are robust since they are supported by a steady recovery in the market environment. To this end, JVC Kenwood will merge Kenwood Electronics Brasil Ltda., Kenwood’s sales company in Brazil, into JVC do Brasil Ltda., JVC’s sales company in Brazil, which will survive and become the new sales company named JVC KENWOOD do Brasil Comércio de Eletrônicos Ltda. The new company will improve management efficiency by implementing the restructuring that accompanies the merger, such as sharing the infrastructures and operations of both sales companies.
This is an absorption-type merger, with JVC’s Brazilian sales company as the surviving firm and Kenwood’s Brazilian sales company as the absorbed firm, taking into account the various systems in Brazil.
2. Overview of the new company
|Trade name:||JVC KENWOOD do Brasil Comércio de Eletrônicos Ltda.|
|Capital:||19.5 million real|
|Business:||Sales of JVC- and Kenwood-brand products (mainly car audio devices, car-navigation systems and camcorders) in Brazil|
|Representative:||Tadanori Murakami, President|
|Location:||Sao Paulo, Brazil|
|Establishment:||January 1, 2010 (planned)|
For inquiries regarding this news release, please contact:
- Media Contact:
- Public & Investor Relations, Strategic Management Division, JVC KENWOOD Holdings, Inc.
Tel: +81-45-444-5232 Fax: +81-45-444-5239 E-mail: firstname.lastname@example.org
3-12 Moriya-cho, Kanagawa-ku, Yokohama, Kanagawa Prefecture 221-0022