Pioneer is still awaiting the financial backing that could rescue the company from its financial woes.
Although a deal was to close in October with Baring Private Equity Asia, Pioneer issued a statement saying that talks are still ongoing.
Additionally, Pioneer just reported steep losses on slightly lower sales.
Pioneer had announced in September it would receive about $540 million from Baring Private Equity Asia, just in time to help pay back hefty loans coming due. But negotiations on the deal are now dragging on.
“November has become a make-or-break month for the talks,” said The Nikkei Asian Review Tuesday, adding, “A source close to Baring said the firm’s position has not changed, only that discussions on the final terms have dragged out.” But it quoted an unnamed senior official at Pioneer saying that the outcome of the Baring deal is still uncertain.
Pioneer admitted in September that it was having trouble remaining a “going concern,” which means it was uncertain of its ability to fulfill its financial obligations. The company had just lost $60 million in the quarter ending in June and a loan was reportedly coming due for about $120 million at the end of September.
The hope remains that Baring will still come to the rescue.
The Nikkei Asian Review reports that while Pioneer’s car navigation sales are struggling, its mapping data remains an important asset.
Pioneer has a subsidiary called Increment P, which handles databases that support very precise digital maps (the type necessary for autonomous cars). Increment P could be worth $350 million, and it’s the reason for Baring’s interest in Pioneer, said the Nikkei Asian Review.
In fact Google, whose maps have been a major factor in the devaluing of Pioneer’s car navigation business, had once sought to partner with Increment P in the mapping space, said the Nikkei Asian Review.
It said, under a best case scenario, with the backing of Baring, Pioneer can partner with a manufacturer to give it an advantage in the emerging autonomous car market. But it said, “The worst-case scenario, however, is one where Baring recoups its investment by selling off Increment, leaving Pioneer completely hollowed out.”
See the full Nikkei Asian Review story here.
Too funny.. half the comments complain that Pioneer is overpriced, the other half complain they’re too much into the ‘race to zero’.
So which is it? Are they too cheap, or too expensive?
I have been using a top of the line Pioneer amplifier for more than 30 years and it’s great. Now I stop using it cause it broke down after 3 decades. Repair jobs nowadays are becoming more expensive. I rather buy Chinese made amplifier which are available in the market now at
the cost of repair or even less. The reason why Pioneer is overpricing their products is to recover their lost to stay alive. They are still competing with other brands like Yamaha, Denon, Sony, Onkyo which are equally priced the same. These brands make the same amplifier system just like smartphones nowadays. So they are priced equally the same. Most smartphone today are manufactured by the same manufacturer in China like iPhones, Lenovo, Huwaei, Xiaomi, and even Nokia nowadays. They are all manufactured by Foxconn in China. This is the same company that makes HP, Dell, Apple, Acer, Etc.
Pioneer sold it’s home audio division to Onkyo In 2014.
Ive been using pioneer for 29yrs. The problem is the stuff that lasts (impp subs) that are quality and lasts, you dont charge enough for. So you stop selling it. STUPID!!!! The radioapp brand was mainly built for iphones, idiotic!!!!! The common joe iphone user doesnt tinker, wont buy a radio. Like an andriod user would but, dont catter to them. I love this company product most of the time but, PRICING and idiotic decisions is what kills them. Make the head unit cheaper and more towards people that actual would buy it. I would have bought the w4400nex at 500, 700 kma.
Bye! Can’t be gone soon enough. They have literally dragged our entire industry down for years.
I will not cry when they are gone. I have been having a progressively worse experience with Pioneers products for years.
The final straw for me was the AppRadio line, specifically the AR3. Pioneer is notorious for stopping support of their products as soon as they release the next model, if not the moment it’s next one goes into development. I loved the potential it had, but they implemented it so poorly. They supported it an an even lower level which was astonishing given how poor the implementation was.
Just a few tweaks and would have been far better but they won’t do a damn thing with it. Now it just sits in my car as an overpriced Bluetooth touch screen radio and disc player.
Onkyo already rescued the home audio-video division. About a year ago.
https://hometheaterreview.com/pioneer-sells-home-av-business-to-onkyo/
money infusion with what plan?
I am speaking from home audio side they don’t have much that’s appealing to people out there I guess it’s sad I love old school Pioneer Equipment
amen.
OEM Navi is a pain to use and costs thousands,
all you need is a smart phone, easier, better faster allways updated done..
This actually has nothing to do with the retail side of things ( Mobile audio/nav/Dj ect ) they are having trouble on the oem side of things. Pioneer makes alot more than what you see labeled as a factory pioneer speaker or audio equipment.
Have to agree with Scott. The race to Zero has driving both prices and quality profit. And HD digital isn’t helping companies that depend on head units either. Change is coming.
But although I’m not much of a fan of Pioneer, I will cry if they go down.
HAHA,WHAT A LAFF,,,THE MAIN REASON THEY STRUGGLING IS BECAUSE THEY ARE WAY OVERPRICED SO PEOPLE CANT AFFORD THEREFORE CANT BUY,,WHOEVER SAYS CONTRARY IS NOT A BUSINESS PERSON ONLY AN IDIOT WOULD SUGGEST THAT THEY RAISE PRICES,,THEN THEY FLUDD THE MARKET WITH CONTROLLERS SO PEOPLE CANT KEEP UP WITH THE NEW,,HERE IS AN EXCELLENT EXAMPLE OF WASTE OF MONEY,,,THE CDJ TOUR,,WHO THE HELL BUYS THIS OR CAN EVEN AFFORD IT..
We have been in the business since 1962 and have raised our prices with the ebb and flow of demand, economy and cost of living.We grew our gross number this year so far 40.6% over last year YTD as a result of our digital footprint and raising our prices. The independent that knows what they are doing are currently and will be from now on in high demand from the consumer base.The worm has turned, so step up your game and strike!! WE ARE THE SPECIALIST.An example is we sold four AVH-W4400NEX @ $700.00 each in one day last week and i’m sure the customers would have paid more without a doubt.
Well said,,and another tip DONT FLUDD THE MARKET WITH OVERPRICED UNITS
Finally the writing on the wall is now becoming a reality. What a concept lower your prices to be successful, that has never added up as a recipe for success. Pioneer needs to grow up and raise their prices as there is value in their double din market. Their restructure should include cleaning up the Internet seeking out successful independent dealers and Internet dealers that hold map. For myself, all I can say is it has been entertaining watching the rise and fall of a great brand. (Sad in some ways) Pioneer never once listened to the dealer base. I don’t think they will now. I guess their final Model number will be AVH-TITANIC-NEX,T
Here’s an idea. Quit eroding the market and be profitable. Amazing that the one brand that sets pricing among other brands in the market is having financial problems.