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Hoping to turn around its unprofitable TV business, Japanese auto and consumer electronics manufacturer Pioneer has decided to halt the production of its 42-inch plasma panels and other smaller sizes effective March 2009.

According to the Asahi newspaper, it will purchase these smaller panels from other established players like Hitachi and Panasonic maker Matsushi ta Electric Industrial. On other hand, 50 inches or larger plasma panels will still be manufactured at other plants.

It is undeniable that Pioneer is no match against its bigger players such as Matsushi ta and LG Electronics in this segment. This year, the company’s sales target is 480,000 units of plasma TVs or a mere 10% of Matsushi ta’s 5 million annual target.

Pioneer is no stranger to outsourcing strategy. In fact, it is the company’s goal to move away from vertical integration and this strategy will help recover some of its losses. Last year, the company turned to Sharp Corp for manufacturing liquid crystal display (LCD) TV’s. 

Read [Reuters]