Tokyo — JVC and Funai Electric plan to begin joint development and production of LCD televisions, the companies revealed in a joint statement Wednesday.
Victor Co of Japan (JVC), which is already moving to integrate certain operations with Kenwood, said it expects to use Funai's low-cost production capabilities to produce TVs, while Funai will add JVC's global brand and technology expertise, according to reports out of Japan. The companies said they expect to jointly reach a 10 percent market share through the arrangement.
Starting in February, JVC said it is to supply LCD TVs made at its Mexican operations to Funai, which will sell them under its own brands in North America.
JVC plans to market in Europe LCD TVs made in Poland by Funai, beginning in April and September. The companies expect to produce products for worldwide markets later this year.
The companies said they will benefit from the joint procurement of supplies and from the consolidation of logistics and maintenance. The deal does not involve an alliance of capital, the companies said.