Sony boss mulls future of Ericsson joint venture

 

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By Reuters

Posted on 28 Aug 2008 at 08:16

Sony's joint venture with Ericsson must improve or the relationship rethought, according to Sony's chief executive.

Asked whether Sony is planning to end its Sony Ericsson joint venture, Howard Stringer told German newspaper Die Welt: "It's certainly been a difficult year but buying out a partner is never an easy thing."

Sony lowered its group net profit forecast for the year to March by 17%, citing a slump at Sony Ericsson and weakening prospects for its electronics division amid tough price competition.

"We have to work together again as we did two years ago. Or the joint venture will have to find its own solution," Stringer said.

He added that it was hard for a company to be as nimble as possible when it works in a joint venture.

"You're always engaged in discussion and negotiation. We and Ericsson are always discussing ways of making Sony Ericsson as successful as it possibly can be," he said.