Pioneer Announces Plan To Sell Its Home A/V Electronics Subsidiary

A

admin

Audioholics Robot
Staff member
On June 24th, Pioneer officially announced they will be selling their home A/V electronics subsidiary. What does that mean for consumers? Not a whole lot at this time. New Pioneer branded A/V receivers and loudspeakers will continue to roll out, including Dolby Atmos compatible models. Moreover, with an alliance between Pioneer and Onkyo , Pioneer Home Electronics should emerge as a stronger, leaner competitor.


Read about the sale of Pioneer Home Electronics Corp here. Is this bad news for Pioneer's home A/V division? Let us know what you think!
 
slipperybidness

slipperybidness

Audioholic Warlord
I agree with Bizarro. I'm a longtime fan of Pio (home A/V, car audio and subs, pro/DJ gear), but never had much love for Onkyo.
 
TLS Guy

TLS Guy

Seriously, I have no life.
On June 24th, Pioneer officially announced they will be selling their home A/V electronics subsidiary. What does that mean for consumers? Not a whole lot at this time. New Pioneer branded A/V receivers and loudspeakers will continue to roll out, including Dolby Atmos compatible models. Moreover, with an alliance between Pioneer and Onkyo , Pioneer Home Electronics should emerge as a stronger, leaner competitor.


Read about the sale of Pioneer Home Electronics Corp here. Is this bad news for Pioneer's home A/V division? Let us know what you think!
So are Pioneers going to be Onkyo, or Onkyos Pioneers?

Despite the spin this is more bad news. It reflects declining sales and profitability.

Outlook for Denon/Marantz us uncertain at this time. I expect more likely than not bad news on that front. So that just leaves Yamaha to do business without going through the slicer.
 
M

MidnightSensi2

Audioholic Chief
So are Pioneers going to be Onkyo, or Onkyos Pioneers?

Despite the spin this is more bad news. It reflects declining sales and profitability.

Outlook for Denon/Marantz us uncertain at this time. I expect more likely than not bad news on that front. So that just leaves Yamaha to do business without going through the slicer.
Haha, I came to say 'TLS Guy's prediction continues'
 
gene

gene

Audioholics Master Chief
Administrator
Onkyo and Pioneer Finalize Sale





Recently there were reports that Pioneer would sell its home audio-video arm to Hong Kong-based Baring Private Equity Asia and Pioneer’s Japanese rival Onkyo Corp. Baring was said to acquire 51% of Pioneer with the rest to be divided at a later date. It's now September and new information has been released about the deal. Baring has pulled out of the deal and taken their cash with them. This has resulted in Pioneer selling directly Onkyo in exchange for a 14.95% stake in Onkyo. Both brands will be maintained after the sale, according to the companies. We'll keep an eye on this deal and let you know the details as they emerge.
 
LAB3

LAB3

Senior Audioholic
I hated to read this, I had some really good Pioneer gear back in the 70/80's I wish I had not sold now..... I see why all the doom and gloom about Denon,Marantz as now Pio and Onkyo. The same thing has happened to Klipsch speakers lets hope these brands don't turn into poorly made consumer junk. Onkyo use to make quality equipment for many years but after they moved the factory their Q.C. went down hill Fast. Lets hope Yamaha will continue to build reliable products like they have for so many years.
 
H

herbu

Audioholic Samurai
Onkyo use to make quality equipment for many years but after they moved the factory their Q.C. went down hill Fast.
Quality Control has nothing to do with location of the factory. I went through opening new factories in: Japan, Mexico, Hungary, China, Brazil and the US.

Quality Control is a corporate philosophy. It doesn't change with manufacturing location unless the company intends it.
 
LAB3

LAB3

Senior Audioholic
Quality Control has nothing to do with location of the factory. I went through opening new factories in: Japan, Mexico, Hungary, China, Brazil and the US.

Quality Control is a corporate philosophy. It doesn't change with manufacturing location unless the company intends it.

I had read on another forum they moved the AVR factory from Japan to Malaysia. I had no idea they had so many locations making AVR's.
I had a TX-SR 805 new that had two HDMI boards fail and the resistors going bad for the display, all in the first 13 months I owned it.There was a thread about the 805 AVR that has been posted on for years that included other newer models having issues. IIRC a forum member posted they use to work for Onkyo and it was the new employee's not being trained properly at the new AVR plant.:confused: If Q.C.or poorly trained employees was not the problem then why does Onkyo have SOO many AVR failing like mine did?????? You can bet Yamaha sells as many AVR's as Onkyo and you Do Not see/read hundreds of posts about them failing like what has happened to Onkyo. What ever the reason I Hate reading Pioneer merging with them and I am done with Onkyo products as I had to deal/argue with their Customer Service and paying freight 3 times for warranty repair.I will not purchase another AVR online to save a few dollars as my Yamaha replacement for the 805 came from a local Yamaha retailer so if it failed they paid for freight and had to deal with C.S.
 
H

herbu

Audioholic Samurai
IIRC a forum member posted they use to work for Onkyo and it was the new employee's not being trained properly at the new AVR plant.:confused: If Q.C.or poorly trained employees was not the problem then why does Onkyo have SOO many AVR failing like mine did??????
When a company opens a new mfg site, training is one of the issues they have to deal with. The company establishes processes and procedures for training. They also have processes and requirements for the actual mfg line. Each company decides how they want to position their product. Is it going to be the absolute best product with the best quality and a premium price? Maybe they want to target customers looking for the cheapest price, and only make their product as good as they can for that price. Most likely they are somewhere in the middle, but that can cover a lot of ground. (As a consumer, you must also decide where within that spectrum you want to be.)

Take a company at the high end of the quality scale. Opening a new plant somewhere like Malaysia or China is likely to save money in both logistics and personnel. Maybe the burden rate of the average employee drops from $100k/year in the US to $10k. If your factory has 1k, 5k, 10k workers, it can add up. BUT it means your employees will likely not be highly skilled, nor familiar with 6 Sigma, Lean, Statistical Process Control, or any strict mfg processes. So you have to teach them. And once again, the company must decide how much they want to spend on teaching before they begin to realize the actual savings from high volume in a low cost environment. Your company at the high end of the scale realizes it is a "pay me now, or pay me later" situation, and if they scrimp on the initial training it can damage the whole company's reputation. Another company may decide 80% on the scale is far enough, they believe they can ramp up the learning in parallel with production, and salvage unhappy customers with good service.

The best companies put incredible resources into training, AND begin their quality checks/processes at 100%. So maybe only 1 unit per day actually ships at first, but the company is confident that unit is perfect. The thing that ramps up is the volume, NOT the quality. The onerous and time consuming quality checks only ramp down AFTER the product quality is proven for a sustained time. But this costs money up front.

So I can tell you if product quality suffers from a move to a new plant, it is because tradeoffs were made to hurry the volume ramp.
 
A

aarow

Audiophyte
I beg to differ with opinions about Pioneer receivers. For the past ten years Pioneer has gone downhill in quality control. Most of the Pioneer receivers don't turn on after a few years of use. Typically a power supply issue that Pioneer never admitted to and or repaired in the newer and older models. I for one would never buy Pioneer anything in the last ten years except their plasma TV's they use to make. Pioneer TV's are well made, but they don't make TV's anymore, but their receivers are junk except if they are older than Ten years. Look online on how many people have had and continue to have issues with their receiver line. No wonder why the company unloaded their receiver line. Don't know if Onkyo is going to make it better or worse?
 
slipperybidness

slipperybidness

Audioholic Warlord
I beg to differ with opinions about Pioneer receivers. For the past ten years Pioneer has gone downhill in quality control. Most of the Pioneer receivers don't turn on after a few years of use. Typically a power supply issue that Pioneer never admitted to and or repaired in the newer and older models. I for one would never buy Pioneer anything in the last ten years except their plasma TV's they use to make. Pioneer TV's are well made, but they don't make TV's anymore, but their receivers are junk except if they are older than Ten years. Look online on how many people have had and continue to have issues with their receiver line. No wonder why the company unloaded their receiver line. Don't know if Onkyo is going to make it better or worse?
My Pioneer Elite VSX-82txs has been going strong for about 9 years, nice robust amp section.

Don't forget, Pioneer is still a very big player for live DJs and similar professions too. Their gear in that market isn't junk.

That being said, next time I buy an AVR, I will likely go back to Yamaha, or maybe Denon/Marantz
 
BoredSysAdmin

BoredSysAdmin

Audioholic Slumlord
I had read on another forum they moved the AVR factory from Japan to Malaysia. I had no idea they had so many locations making AVR's.
I had a TX-SR 805 new that had two HDMI boards fail and the resistors going bad for the display, all in the first 13 months I owned it.There was a thread about the 805 AVR that has been posted on for years that included other newer models having issues. IIRC a forum member posted they use to work for Onkyo and it was the new employee's not being trained properly at the new AVR plant.:confused: If Q.C.or poorly trained employees was not the problem then why does Onkyo have SOO many AVR failing like mine did?????? You can bet Yamaha sells as many AVR's as Onkyo and you Do Not see/read hundreds of posts about them failing like what has happened to Onkyo. What ever the reason I Hate reading Pioneer merging with them and I am done with Onkyo products as I had to deal/argue with their Customer Service and paying freight 3 times for warranty repair.I will not purchase another AVR online to save a few dollars as my Yamaha replacement for the 805 came from a local Yamaha retailer so if it failed they paid for freight and had to deal with C.S.
Hush. Don't let my 805 hear this. It's been going strong since purchased new on 2007.
Biggest issue - they are running hot and must be placed in well ventilated area.
Numerous reports of Onkyo placed in tight cabinets overheat and had issues with HDMI boards.

That said, I don't like direction where Onkyo is heading recently - they used to be pioneer (pun intended) in latest and greatest and now just doing cost cutting. I think if they want to survive they truly need to disrupt the market somehow - maybe crazy idea of pre-outs on cheaper models
 

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