Pioneer pulls plug on plasmas

The Japanese maker of car navigation systems and audio equipment said it will start buying plasma panels from Matsushita Electric Industrial, the world's largest consumer electronics maker, but did not provide details on the timing and volume of panels it will now outsource.

"The move was regrettable, but we had no choice but to do so for the sake of the company's future," Pioneer president Tamihiko Sudo said at a press conference.

Analysts generally praised Pioneer's decision to withdraw from the plasma panel business. "Although the company learned its lessons the hard way, the quicker it exits from the loss-making business, the lighter the financial burden becomes," Tokai Tokyo Research Center analyst Osamu Hirose said.

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