Will TCL Ultimately Withdraw From Europe?
From The Wall Street Journal
TCL Will Produce Fewer Sets in France As Expansion Falters
TCL Multimedia Technology Holdings Ltd. announced plans to overhaul its European television-manufacturing operations — the latest sign of problems with the company’s expansion strategy.
The changes will result in TCL producing fewer TV sets in France and, temporarily, other European countries. Those it produces won’t be sold under its own brand but will be supplied to other companies.
Its deal in 2003 to acquire the European TV business of Thomson SA marked one of the more significant moves by a Chinese company to expand overseas in recent years and left TCL in control of the Thomson brand in Europe and the RCA brand in the U.S.
TCL opened its first factory dedicated to flat-panel TV sets only last year, well behind Sony Corp., Samsung Electronics Co. and LG Electronics Co. Earlier this year, TCL moved to secure LCDs by forging a supply deal with LG.Philips LCD Co. LCDs are used in the most popular type of flat-panel TV sets.
