Pioneer 2012 Annual Report Download - page 9

Like China, Brazil represents a large market, and with top-
class brand recognition, cost competitiveness through
a local manufacturing structure, and a firmly established
sales network, Pioneer has established a solid advantage
in the market. Utilizing these strengths, we are pursuing a
business expansion strategy that integrates manufacturing
and marketing. This involves developing products matched
to local market needs, utilizing local sales networks to boost
sales of car CD players and car AV products, and increasing
sales of home AV products through local production.
We also opened a sales office in Argentina in February
2012 and plan to open a sales office in Colombia to further
expand our local sales structure in the Central and South
American market.
Our manufacturing joint venture with the Asia Optical
Group of Taiwan is one of the cornerstones of our business
expansion in Brazil. Pioneer has been operating its own
plant in Brazil, which primarily manufactures Car Electronics
products, and in October 2011 we also established Pioneer
Yorkey do Brasil Ltda. (PYB) as a manufacturing joint
venture in Manaus, Brazil with the Asia Optical Group.
PYB has commenced operations with the manufacturing
of digital cameras, leveraging the strengths of both
companies—the Asia Optical Group’s optical technology
and Pioneer’s mass production technology.
The joint venture has great significance in terms of
Pioneer’s growth strategy. This will become a new business
model for Pioneer, through which we will expand the
scope of our business to include production and sales
of mechanical parts as well as electronic manufacturing
services (EMS)*. This will contribute to earnings in addition
to the Car Electronics and Home Electronics businesses.
Utilizing the expertise of both the Asia Optical Group
and Pioneer, PYB will promote local procurement of
mechanical parts to further raise quality, reduce costs, and
shorten delivery term.
Utilizing Pioneer’s established brand
recognition and manufacturing capabilities
to expand the business
Establishing joint venture
with the Asia Optical Group
for further business expansion
Car DVD player, “Ayrton Senna” model
Special Feature
Growth Strategy for Brazil
* Electronic manufacturing services (EMS): Subcontracted manufacturing
services for electronic equipment
Company name: Pioneer Yorkey do Brasil Ltda.
Foundation: October 2011
Location: Manaus, Brazil
(on the site of Pioneer do Brasil Ltda.)
Stated capital: 50 million real (Pioneer do Brasil
51%, Asia Optical Group 49%)
President: Fumio Kameyama
Car DVD player for Brazilian market,
featuring a 3-inch LCD
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Pioneer Corporation Annual Report 2012