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The consolidation of Pioneer’s home A/V business unit in Japan with two other business units will turn the unit into a leaner wholly-owned subsidiary.
Russ Johnston, executive VP of home entertainment and corporate communications at Pioneer Electronics USA, said the move will speed up product planning, time to market, and a return to home A/V profitability.
The home A/V business includes engineering and product planning for global markets. The other two units that will be part of the subsidiary are the company’s wired phone business, which largely sells into the domestic market and the company’s domestic home-A/V sales operation. The restructuring was announced Feb. 12.
The new subsidiary, which will be responsible for its own profit-and-loss statement, will be home to all product development and engineering staff, sales management and back-office functions for the three business units, Johnston said. The consolidation will improve control of SG&A and enable the three groups to make speedier product planning and development decisions, he continued.
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