JVC, Kenwood to merge under JVC Holdings

Every bean-counter knows that falling prices and shrinking margins add up to one thing - cost-cutting pressure. Now we get word that JVC and Kenwood are merging underneath a single holding company, aptly named JVC Kenwood Holdings. Hopes are high for the new company, with plans to quadruple profit in three short years by focusing on car and home audio. Expect to see more of this kind of merger/acquisition activity, especially among small- to medium-sized companies as more competition -- especially from South Korea and China -- ramps up. Every JVC share will be exchanged for two shares in the new company, while Kenwood stock will get a 1-for-1 rate. JVC definitely got the better end of the deal, with JVC's president continuing on in that role with the new company. It will be interesting to watch how this might affect Kenwood/Bain Capital bidding for D&M Holdings.

EDIT: the new company will be called JVC Kenwood Holdings, not JVC Holdings. - Thanks, dcny!

[Zed @ May 12th 2008 5:03PM]

two shit companies creating a shit merger to make double shit products. the shit blizard is a coming.

[Steve Jones @ May 12th 2008 5:43PM]

Perhaps but at the higher end of the market their car stereo equipment can be quite tasty.

[Jaws @ May 12th 2008 5:06PM]

is this like the expect mega-company resulting from the Compaq / HP merge? Where they got REALLY big after the merger, and then faded back into their role behind Dell again when the sales slipped back to where they were before for HP?

I'm thinking so...

[Backwards People @ May 12th 2008 5:10PM]

Travelers?

That umbrella logo is now owned by Citigroup... so they can smash it.

[joey @ May 12th 2008 9:53PM]

Travelers was able to purchase back the umbrella from Citi a few months back so the red umbrella is back with Travelers.

http://money.cnn.com/2007/02/13/news/companies/citigroup/index.htm?postversion=2007021314

But I thought it was odd that the article above would want to use a well recognized logo for the graphic illustration as when I first saw it I thought Travelers had something to do with the JVC/Kenwood deal.

[Johan S @ May 12th 2008 5:14PM]

Do they know they'll be competing with Microsoft Sync type products (combined audio and GPS etc. in a decent UI) ?

Yah I know Sync's GUI in particular sucks .. i meant in general.

[Wobbly @ May 12th 2008 5:32PM]

I've used Kenwood Excelon car stereo receivers for years and I love 'em.

[Foggy @ May 12th 2008 5:43PM]

Agreed... both companies make solid products.
Folks that call these companies "shit" know shit about shit....

[dcny @ May 12th 2008 5:37PM]

I thought the new company was to be named JVC Kenwood Holdings not JVC Holdings

[Steven Kim @ May 12th 2008 6:56PM]

You're correct, thanks for the catch!

[Shane @ May 12th 2008 6:19PM]

The Kenwood and JVC head units I have used are rock solid...However, the user interfaces leave much to be desired. Aftermarket equipment designers should take cues from the OEM designs...Large simple controls and clear displays.

Having blue LEDs blazing in your face at night or moving through several layers of menus with inscrutably small buttons for a simple function is a sure way to cause an accident...

People tend to be looking for more and more features in aftermarket head units so perhaps that has something to do with it. However, OEM systems are now integrating many of the same features WITHOUT the complex interface so I suspect there is still room for interface improvement in aftermarket units.

[Andrew Herron @ May 12th 2008 6:52PM]

Car audio aside, I wonder how this is going to affect Kenwood's Ham radio offerings, which were by far, some of the best on the market.

[Shane @ May 12th 2008 7:21PM]

Andrew:

Good point. Kenwood's amateur radio gear has always been top notch. I thought it was entirely separate from their home and car audio division though...

If that isn't the case, however, hopefully JVC will leave Kenwood's 2-way radio equipment (amateur and pro) alone.

[Adam @ May 12th 2008 8:21PM]

And another manufacturer of amateur radio gear is merged... (following in the path of Standard Horizon, parent company of Yaesu, who was bought by Motorola)

Hopefully the Kenwood communications division is left to continue to do its thing!

[anabouboula @ May 13th 2008 5:43AM]

Take that Pioneer!