Navigon pulls out of US Market

[Darren]

Story courtesy www.gpsbusinessnews.com.

Navigon have confirmed that they have decided to withdraw from the PND business in North America. CEO Egon Minar in an interview with GPS Business News blamed 'the difficult economic environment and aggressive pricing' for the decision.

Although the Chicago offices will remain open there will be a significant reduction in staff numbers. A few people will remain to support the continuing automotive and mobile phone business.

Navigon entered the US market in 2007 and by 2008 had attained the No4 position in the PND market. However the US market has suffered from very aggressive price cutting.

Whilst endemic amongst the lesser brands it has now affected the premium sellers with both Garmin and TomTom offering huge discounts.

Such aggressive pricing is not sustainable in the long term and serves only to damage the wider market and competition. Taken to its logical conclusion this activity will result in only two or three brands surviving at which point they can set their own prices. Navigon have wisely chosen not to participate.

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Darren Griffin

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