Word: motorola
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...foreign money to buy the raw materials it needs, but in recent years it has swung increasingly to making sizable foreign investments. One of the biggest of these took shape last week, when Matsushita, a $4 billion giant in consumer electronics and household appliances, signed an agreement to buy Motorola Inc.'s U.S. television business...
...analogy is considerably exaggerated, but the transaction is indisputably major. Motorola's TV sets last year ran up sales of about $240 million, or 6% to 7% of the U.S. total. Added to Matsushita's sales of Panasonic products, which will continue through a separate distribution network, they will give Matsushita about 15% of the American TV market, v. about 23% each for Zenith and RCA. Matsushita is also stealing a march on its archrival Sony, both in the U.S. and Japan. It will acquire three Motorola plants in the U.S. and one in Canada, giving...
...households have color sets, v. about 58% of U.S. homes. But Sony and other Japanese manufacturers are only beginning to offer limited quantities of color sets with screens larger than 19 in., and many will not have mass-produced large screens ready for sale until later. But by December, Motorola plans large-scale marketing of color sets with 22-in. to 25-in. screens, to be made in the U.S., and sold in Japan through AIWA Co., which is 50% controlled by Sony...
...Right now, there are a lot of rich Japanese who want really deluxe articles, and we feel that Motorola's big sets are perfect for the situation," says Tadahiko Sasaki, AIWA's sales promotion chief. Motorola, with its long head start on production, could undersell its rivals on their home ground. Transportation costs and Japanese taxes will raise the Tokyo price of Motorola Quasars to a range of $750 to $1,250, or 25% more than they cost in the U.S.-but that will still be below the introductory prices of $1,750 to $1,800 expected...
...Motorola is not the only American manufacturer trying to switch TV trade channels between the U.S. and the Far East. While Taiwan factories make more than half of all the black-and-white TV sets sold in the U.S., many under Japanese brand names, RCA Corp. earlier this year signed up the Lai Fu Trading Co. to sell RCA color sets in Taiwan...