A Japanese Soap Opera: JVC & Kenwood
In a scene from a great Kabuki play, some of the biggest players in the Japanese manufacturing arena are shaking things up. Stick with us in this -- the plot's complicated. Especially in Japanese. Panasonic's parent company Matsushita is also the main shareholder of JVC, known as Victor in Japan. JVC's been struggling lately, but enjoys success in the video camera field. Enter Kenwood, stage left. Kenwood hasn't been doing great lately, but has had a recent surge, particularly in the car audio market. Kenwood will buy enough shares of JVC to give them 13 percent of the company. In the second act, JVC and Kenwood will merge into one company later this year to become JVC Kenwood Holdings. The merge could happen as soon as October. More details if you continue reading.
The news is great for JVC Victor who already announced that they're backing out of the flat-panel manufacturing field. This can only give both names a much-needed boost. Competition from Korea and China has pushed this move that stands to benefit both companies. In a graceful move for the final act, the chairman of Kenwood will be the chairman of the new firm, while the president of JVC will preside over the newly merged company. Standing ovations, and "bravo" all around.-Leslie Shapiro