Losses at Denon/Marantz, more cost cutting

[Woochifer]

Apparently D&M Holdings (the company formed by the initial merger of Denon and Marantz, and later additions of McIntosh, Rio, and ReplayTV) is still finding its footing. They just announced a loss for the first half-year, and attribute that to declines in the premium consumer A/V market.

But, the article I read also had an interesting bit about D&M Holdings consolidating their manufacturing into a facility in China to save on costs. I don't know if this means that they now deal with only one outsourcing partner, or if they actually own and manage this facility. The last few years, Denon in particular has been moving their entry and midlevel manufacturing around to different outsource partners in China, and I don't know if this has affected their product quality. The article also mentioned that D&M's manufacturing plant in Japan is being spun off into an independent company. Given that this might be where Denon's (and Marantz's?) flagship products are currently manufactured, does this now mean that those models are also getting shifted to China?

http://www.stereophile.com/news/112403dmholdings/

[kelsci]

Woochifer; the article is certainly not clear as to what they are really going to do with the plant in Japan and for that matter whether the flagship models of Denon and Marantz will be manufactured in China or Japan. All D&M needs is a bad reputation on their products down the road that would kill there business altogether particulaly on Denon and Marantz products due to poor quality control.

[peccavi]

In my opinion, QC AT Denon has been slipping for the last 2 years...I sell Denon as well as other brands and used to own a lot of their equipment (dvd-players & rcvrs)...I don't sell marantz so I can't comment on their problems....RUMORS ABOUND about what is/will happen with them, but I have heard (consistantly) that they are trying to get market penetration, unit sales, and profits up for future sale of company or divisions........

[woodman]

This is the exact scenario that I tried to warn people about at this forum when Denon was first sold to the group of N.Y. investment bankers. It does not bode well for the poor consumer who blindly goes on buying and praising (to anyone who'll listen) his beloved Denon products. Now Marantz, McIntosh, Replay and Rio have joined the group and the same fate is in store for the avid believers and supporters of those brand names as well. Everything that is of value to consumers (at least those that are equipped with a brain) will be sacrificed in the name of PROFITS ... the only thing that D&M Holdings is concerned with.

Of course, profits is the name of the game for all corporations ... but those companies that view profits as a long term proposition will survive and prosper, while those that are only interested in TODAY'S profits are doomed to failure.

[RGA]

One of the dealers here, and my friend who is the purchasing agent and handles "PROBLEMS" has recently dumped Marantz because he said they are the absolute worst company to deal with if there is a problem with anything. Receiver malfunctions are very high as a percentage but what is more irritating for the dealer is that it takes Marantz months(several) to fix the units and when they finally come back tey still don't work. Needless to say customers don't like that and blame the dealer.

So the Dealer says screw it I'll carry something else. They dropped Denon in 2002. After listening to the 1803 and 3803 I can understand dealers not wanting to carry these things. Cheap plastic, pretty lightweight power supply and sound lifeless. Add to this poor customer service...why would dealers want to carry them? Especially when there are others like NAD, Yamaha who don't seem to have the issues and certainly sound no worse.

Whether this is due to being built in China can't say. Lot's of stuff is built in the far east with no problems. It comes down to the quality control.

[Over50]

I've seen in the auto sector where more and more they are bringing in a private quality control company. My son works for one such company. It really does work the company who hired him in are very happy with the results. Maybe other sectors of business will follow suit.

[Worf101]

Man this is sad to see and sadder to hear. I always respected Denon products I have one of their first cartridge CD players and it worked well for over a decade. I have an Onkyo DC3700 DVD player now and I love it. Hate to see them go the way of so many other manufacturers... whoring themselves for this quarter's profits and killing themselves forever with bad product and worse service. That's why I'll never buy Pioneer again, they had their shot and muffed it. Will these company's ever learn?

Da sadder but wiser Worfster

[grampi]

The number of quality audio products is dwindling. Even companies known for putting out quality products are following suit by choosing quantity over quality. I predict that in less than 10 years all of the audio companies will have givin in to this "cheap" virus that seems to have the entire business world by the throat.

[FAIELLO]

I just purchased the Marantz SR7300 and it was made in Japan according to the packaging. The quaulity of this receiver is top notch. I don't know where the new SR-_400 receivers are being built but hopefully it is still Japan.

[Tarheel_]

as mentioned above, i too was disappointed with the Denon 3803, really had nothing except Burr Brown components that made it say "quality". I found the music non-envolving and had a cheap feel to it when compared to others in the same room. Even its appearance was so 90's like. So I moved to other less talked (on this site) about brands and found a quality receiver that had much more going for it and was indeed made in Japan. I no longer recommend Denon to friends.

[grampi]

So which receiver did you get?