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News
Issue #2002 - 26
(July 2002)
(Updated July
10, 2002)
ACQUISITIONS,
MERGERS & AGREEMENTS
Denso (a Telematics company) Cuts 177 Jobs From Workforce
Telematics components manufacturer
Denso International America has cut 177 jobs at two of its
California facilities, due to a lack of demand for automotive
electronic components.
Denso Wireless Systems America, Inc., in Vista, cut 80 jobs and
LA Laboratories, in Carlsbad, lost 97.
"It is with deep regret that I make this announcement,"
said Ted Toyoda, president of Denso Wireless Systems America and LA
Laboratories. "But we took this action as a result of our
customers delaying their commercial telematics product plans for the
near-term due to the dissolution of their planned service
provider."
The Southfield, Michigan-based company reassured investors that
Denso Wireless Systems America will continue to manufacture
automotive electronic components, while LA Laboratories will focus
on research and development.
On an optimistic note, Mitsuharu Kato, director, Denso
Corporation Board of Directors, told shareholders that the company
is confident that the demand for in-vehicle wireless services will
take off sooner rather than later. "Although the short-term
market demand for telematics has shifted in North America, we
anticipate that in the long-term, the telematics market will
grow."
"With that and Denso’s accumulated expertise in HMI
(human-machine interface) technology and navigation systems in mind,
one of our strategic business areas for future growth will be
telematics," he added.
For more information: http://www.densocorp.com
MobileInfo.com’s Comments & Advisory:
Telematics was a hot segment of the wireless/mobile market. But after
a year's R&D with pilot telematics applications in these trying
economic times, market reaction has been less than encouraging.
Therefore, the enthusiasm of the auto sector in investing more in
Telematics has gone down. We are still bullish with Telematics in
the long run.
Note: This news release may contain forward-looking statements. Readers should take appropriate caution in
developing plans utilizing these products, services and technology
architectures. All trademarks used in this summary are
the property of their respective owners.
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