When the going gets tough, how do corporate dealmakers spend their time? One common task -- especially in hard-hit industries like autos -- is working on supplier bailout deals.
That's the case at Honda Motor Co. Ltd. (NYSE:HMC), which Tuesday announced a $26 million investment in restructuring Pioneer Corp., for which car electronics (including sound systems and navigation products) are a major business.
Honda also said Wednesday it
overcame a fourth-quarter loss of nearly $2 billion to post a profit for 2008, and predicted a modest profit for 2009, the AP reported.
The investment in Pioneer is part of a
broader restructuring of the electronics company, which, as Twice reports, also involves layoffs and deals with Sharp Corp. and Mitsubishi Electric. Pioneer is projecting a loss of $858 million in fiscal 2010.
With Sharp, Pioneer says it will launch an optical disk joint venture by Oct. 1. With Mitsubishi, Pioneer will deepen its collaboration in navigation software. Pioneer says it is also forming a JV with Shanghai Automotive Industry in "intelligent transport systems" and car navigation.
Can Pioneer partner its way out of a rough spot? Honda clearly hopes so. -
Kenneth Klee
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