JVC buys Kenwood

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Justin Pinnix:

Or maybe Kenwood's buying JVC.  I really can't figure it out, but I do know that whenever a "merger of two equals" occurs, a power struggle ensues and only one emerges as the dominant force.  This may explain some of the strange behavior we're seeing out of Kenwood lately.

Vincent Paul Sullivan Jr.:
Were I an employee of the Kenwood Amateur Radio Division I would be updating my resume and cutting back on my spending. Small divisions regardless of profit levels often go by the wayside following large mergers. Is this the death knell for Kenwood's Amateur Division? It's too early to tell with certainty. Today's global economy, demands for profits and little regard for customer loyalty does not bode well for Kenwood remaining in the Amateur Radio business long term.

P.S.  The way I read the story it appears Kenwood is the official buyer but will shortly be under the control of a holding company.

Michael S. Higgins:
Kenwood Consummer bought JVC for the audio division.

William J J Hoge (I go by my first middle name "John"):
Matsushita (aka Panasonic) currently owns controlling interest in JVC.  JVC is losing money, and Matsushita wants out.

Kenwood's corporate plan that they publish for investor guidance says that as part of Kenwood's restructuring they plan to acquire other companies in the home electronics field.  Apparently, Kenwood's management believe that that they can turn JVC profitable.

Kenwood is now the second-largest supplier of two-way radios in the world.  Their Communications Division is concentrating its R&D on digital communication protocols such as P25.  Kenwood's stated philosophy is to maintain a steady and stable presence in "mature markets" such as amateur radio to provide cash flow to fund R&D.  BTW, Kenwood talks about partnering with smaller companies (including Icom) in their published strategy documents.

Look, folks, Kenwood isn't likely to leave the ham radio market in the forseeable future.  Ham tranceivers are profitable and help to fund their growth.  Yes, it's true that they aren't competing with smaller companies such as Icom and Yaesu for the boutique end of the market.  Honda doesn't try to compete with BMW, but both Honda and Kenwood have safe, stable markets selling reasonable (if sometimes quirky) products priced for the mainstream of their marketplaces.

Doug Charette:
"Honda doesn't try to compete with BMW"

Have you never heard of Acura????


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