JV formed to push China car navigation

Pioneer Corp. and Shanghai Automotive Industry Corp. (SAIC) have established a joint venture called Anyo Pioneer Motor Information Technology Co. Ltd to expand the car navigation business in China.

The joint venture will plan, develop and distribute navigation systems in China. These functions will be combined with Pioneer's manufacturing, software development and map database editing capabilities. Car OEM navigation systems will be provided to the SAIC Group, and a traffic information system that matches road and traffic conditions in China will be established. The joint venture aims to achieve sales of 1 billion yuan ($146.65 million) in the third year, topping 1.5 billion yuan ($219.98 million) in the fifth year.

The traffic information systems that will be developed are expected to become increasingly important in China in the years to come. The joint venture will tap the expertise in traffic information systems that Pioneer has established in Japan, and will seek to optimize the traffic information system for China's characteristic road conditions, such as ongoing construction of new roads and increasingly severe traffic congestion. The development will also consider environmental issues.

The joint venture will operate businesses mainly for Shanghai GM, Shanghai VW, and Shanghai Motors, which are affiliated with the SAIC Group. It aims to develop an extremely low-cost car navigation system for the China market by harnessing Pioneer's core technologies both in hardware and software to provide a comprehensive lineup of navigation systems.

Anyo Pioneer Motor Information Technology will be based in Shanghai City, with Ye Yongming as chairman and Fuyue Wu as CEO. Initial capital for the JV is pegged at 90 million yuan ($13.20 million). The investment will be shared by SAIC with 51 percent, and Pioneer at 49 percent.