Honda has confirmed that it is to take a five per cent stake in the Pioneer electronics company.
The struggling electronics company is withdrawing from its home electronics operations to concentrate on its in-car audio, entertainment and sat-nav systems.
The move is part of loss-making Pioneer’s recovery plan, which centres on strategic alliances and joint ventures.
Pioneer has also recently revealed plans for a technology sharing partnership with Mitsubishi to develop in-car audio and navigation systems, and is reportedly in talks with Shanghai Automotive Industry Corporation (SAIC).
Honda’s investment in Pioneer is said to be worth £17.3 million, and will give it far more ability to develop in-car electronics, an increasingly important aspect of vehicle technology.