However, we have judged that maintaining the cost competitiveness of plasma
display panels at projected sales volumes will be difficult going forward. Accordingly,
we have decided to terminate in-house plasma display panel production and to procure
these panels externally, after panel production for our next series of models is
complete. This move will allow us to transform our business model for displays from
vertically integrated, capital-intensive operations to a leaner business model geared to
making value-added product proposals. Pioneer is currently in discussions on the
feasibility of procuring panel modules that may incorporate the Company’s proprietary
technologies. Details will be announced as soon as they are finalized.
Pioneer plans to review its production structure in conjunction with the
termination of plasma display panel production and to streamline the entire display
business to a scale commensurate with sales. We aim to compensate for cutbacks in
the plasma display business by driving further expansion in our growth businesses.
This will be done by shifting related personnel and other business resources to the Car
Electronics business; the professional sound & visual (Pro SV) business, which
involves DJ equipment; and the audio/video product business, including Blu-ray Discrelated
products.