In light of Pioneer’s recent debt challenges and a last minute bailout by Baring Private Equity Asia, Pioneer USA VP Marketing Ted Cardenas’ message to dealers is that Pioneer remains viable and is positioning itself for the long term.
“If I were to say anything [to dealers] it’s that these situations are things that most major corporations face. If you look at other industries, it’s honestly not that uncommon. But obviously, when it’s a manufacturer partner for a retailer and they hear the news and they are not reading the financial reports of other companies, we know it can be disorienting so to speak. So if I were to say anything, it’s that Pioneer remains strong and we remain viable and the actions we have taken and continue to take are actions that will keep Pioneer as a manufacturer for the long term.”
Cardenas said there was no impact on Pioneer USA at present and that he couldn’t comment on the company plans beyond the statements from Tokyo.
Pioneer announced a cash infusion of about $540 million this week from Baring just in time to help it pay back loans due this month. The company has faced steeper competition in its core business of OEM navigation systems as other automotive parts makers seek to position themselves in the automotive digital cockpit market of the future.
In aftermarket car audio, Pioneer announced several new products this month. (See story here).
Nearly identical word for word statement Circuit City released when they got bailed out…. 3 months before they announced liquidation.