May 24, 2001
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Technology
< < Back to Start of Article TOKYO Japan's two leading electronics manufacturers, Matsushita Electric Industrial Co. and Hitachi Ltd., have agreed on an alliance in several strategic technology areas, including home networks and environmentally friendly home electronics. The partnership will enable both companies to invest in and to develop key products and services, to complement each other's technological strengths and to save money, they said.
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The alliance will be able to "deliver the finest results at the highest speed," said Etsuhiko Shoyama, president of Hitachi. "It will contribute measurably to earnings." The companies did not discuss financial arrangements. They said they would pool resources in three areas: integrated circuit cards, home networks for digital electronics and energy-efficient home electronics.
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Particularly in the home networking area, "Speed of development is of essence," Mr. Shoyama said. "We want to develop the system and bring it to the market faster than anyone else."
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The partnership could signal realignment in an industry that has clung to go-it-alone strategies.
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Japanese home electronics manufacturers such as Matsushita - known for its Panasonic, National, Technics and Quasar brands - have been suffering from dwindling margins on mature products, such as refrigerators, washing machines, toasters and irons. A deflationary economy also has affected results.
.
Some analysts said Matsushita and Hitachi should have focused on increasing efficiency by cutting overlapping manufacturing areas, but Wednesday's announcement included no such plan.
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"The problem with Japanese manufacturers is that they make too many different products," said Takatoshi Yamamoto, an electronics-industry analyst and vice chairman at Morgan Stanley Dean Witter in Japan.
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Mr. Yamamoto said that if Matsushita and Hitachi had combined manufacturing, "that would be a milestone." TOKYO Japan's two leading electronics manufacturers, Matsushita Electric Industrial Co. and Hitachi Ltd., have agreed on an alliance in several strategic technology areas, including home networks and environmentally friendly home electronics. The partnership will enable both companies to invest in and to develop key products and services, to complement each other's technological strengths and to save money, they said.
.
The alliance will be able to "deliver the finest results at the highest speed," said Etsuhiko Shoyama, president of Hitachi. "It will contribute measurably to earnings." The companies did not discuss financial arrangements. They said they would pool resources in three areas: integrated circuit cards, home networks for digital electronics and energy-efficient home electronics.
.
Particularly in the home networking area, "Speed of development is of essence," Mr. Shoyama said. "We want to develop the system and bring it to the market faster than anyone else."
.
The partnership could signal realignment in an industry that has clung to go-it-alone strategies.
.
Japanese home electronics manufacturers such as Matsushita - known for its Panasonic, National, Technics and Quasar brands - have been suffering from dwindling margins on mature products, such as refrigerators, washing machines, toasters and irons. A deflationary economy also has affected results.
.
Some analysts said Matsushita and Hitachi should have focused on increasing efficiency by cutting overlapping manufacturing areas, but Wednesday's announcement included no such plan.
.
"The problem with Japanese manufacturers is that they make too many different products," said Takatoshi Yamamoto, an electronics-industry analyst and vice chairman at Morgan Stanley Dean Witter in Japan.
.
Mr. Yamamoto said that if Matsushita and Hitachi had combined manufacturing, "that would be a milestone." TOKYO Japan's two leading electronics manufacturers, Matsushita Electric Industrial Co. and Hitachi Ltd., have agreed on an alliance in several strategic technology areas, including home networks and environmentally friendly home electronics. The partnership will enable both companies to invest in and to develop key products and services, to complement each other's technological strengths and to save money, they said.
.
The alliance will be able to "deliver the finest results at the highest speed," said Etsuhiko Shoyama, president of Hitachi. "It will contribute measurably to earnings." The companies did not discuss financial arrangements. They said they would pool resources in three areas: integrated circuit cards, home networks for digital electronics and energy-efficient home electronics.
.
Particularly in the home networking area, "Speed of development is of essence," Mr. Shoyama said. "We want to develop the system and bring it to the market faster than anyone else."
.
The partnership could signal realignment in an industry that has clung to go-it-alone strategies.
.
Japanese home electronics manufacturers such as Matsushita - known for its Panasonic, National, Technics and Quasar brands - have been suffering from dwindling margins on mature products, such as refrigerators, washing machines, toasters and irons. A deflationary economy also has affected results.
.
Some analysts said Matsushita and Hitachi should have focused on increasing efficiency by cutting overlapping manufacturing areas, but Wednesday's announcement included no such plan.
.
"The problem with Japanese manufacturers is that they make too many different products," said Takatoshi Yamamoto, an electronics-industry analyst and vice chairman at Morgan Stanley Dean Witter in Japan.
.
Mr. Yamamoto said that if Matsushita and Hitachi had combined manufacturing, "that would be a milestone."
