The information was first revealed by a Honda spokesman who explained to Reuters that Pioneer is moving away from its television production operations and instead choosing to focus on automotive electronics. This would be an inviting prospect to Honda, which is hoping to capitalize on Pioneer's experience in this field.
Honda's planned investment, which reaches into the tens of millions of dollars, should give it a good grip over Pioneer's automotive technology, which includes in-car navigation systems, stereos, entertainment units, and possibly the next-generation of car Blu-ray players.
According to Japanese analysts, Honda's investment makes sense since the amount being invested is not significant relative to the company's bottom line but still gives it an ally in the auto electronics aspect of production. While en exact figure has not been released, predictions are hovering around the several billion yen mark, which would translate to around $30 million - $50 million.
Honda's investment would also come at a welcome time for Pioneer, which is struggling under the strain of the global financial crisis. For the past five years, the company has recorded losses, mostly due to its failing home electronics operations, rather than its work with automotive electronics.