HOME > News Release Index > News Release

April 9, 2008
KENWOOD begins shipment of DVD and CD mechanisms as part of its
strengthening measures for the car electronics OEM business, planning to sell a
total 10 million units over three years from FY2008.
As part of its measures for strengthening the car electronics OEM business, KENWOOD Corporation (President and CEO: Kazuo Shiohata; Head Office: Hachioji, Tokyo) is currently expanding the business of optical disk drive mechanisms for automobile-mounted AV equipment.  Recently, the Company received orders from automobile accessories manufacturers in Japan, the U.S. and Europe for DVD and CD mechanisms amounting to about 10 million units altogether over the three-year period between fiscal year 2008 and 2010, and then has begun to ship those devices.
1. Optical disk drive mechanism business of KENWOOD
KENWOOD is implementing measures for strengthening both the consumer and OEM businesses of its mainstay car electronics business, in order to increase sales and improve profitability of the business.  In the OEM business, particularly, the Company positions the device business, which is less affected by the trend of automobile sales than finished products are, as a pillar of the field alongside the genuine product and dealer option product businesses, and is expanding the device business, centering on optical disk drive mechanisms for car-mounted AV equipment.
In 2005, KENWOOD completed the extension of the Shanghai Plant to increase output of optical disk mechanisms, expecting a rise in demand for automobile-mounted multimedia equipment.  At the same time, the Company transferred the production lines from the Nagano Plant in Japan to the Shanghai Plant to further vertical integration, which resulted in enhancing its cost competitiveness.
To raise its product competitiveness, KENWOOD also focused on development of a new optical disk drive, expanded in-house production of optical pickups, and commercialized the industry's thinnest, lightest DVD mechanism and a high quality CD mechanism with high cost-performance.
2. Future outlook
KENWOOD, which shipped 300,000 to 400,000 units of optical disk drive mechanisms in FY2007, has won large orders from automobile accessories manufacturers in Japan, the U.S. and Europe, thanks to the above-mentioned measures.  The Company now plans to manufacture and ship about 10 million units of DVD and CD mechanisms altogether over the period from FY2008 to FY2010.
This time, the Company has begun shipping CD mechanisms to the U.S, which will be followed by such shipments to Japan and Europe.
KENWOOD expects to raise the sales ratio of the device business in the car electronics OEM business to approximately 30% by FY2010 from about 10% in FY2007, aiming to establish a stable earnings structure for the OEM operations.
KENWOOD Group is "Reaching out to discover, inspire and enhance the enjoyment of life" as part of its bold, new vision for the future. As a leader in the field of "Mobile & Home Multimedia Systems", KENWOOD is comprised of three businesses (Car Electronics, Communications Equipment and Home Electronics), 11 domestic and 25 overseas subsidiaries around the world.
For inquiries regarding this article, please contact:
Public & Investor Relations Office, Corporate Relations Division, KENWOOD Corporation
TEL: +81 42 (646) 6724  FAX: +81 42 (646) 1440  E-mail: pr.qa@kenwood.co.jp