It Better Do Better, Says Sony Chief about Ericsson Joint Venture

<August 27, 2008><Reuters-FRANKFORT>Reuters is reporting today that Sony’s chief executive Howard Stringer told the German magazine Die Welt (translates to “The World”), that the Sony Ericsson joint venture must do better. (Did I hear an “Or else”?)

When asked directly by a reporter if the company had any plans to end the Ericsson joint venture, Stringer replied, “It’s certainly been a difficult year but buying out a partner is never an easy thing.” He went on to add, “We have to work together again as we did two years ago. Or the joint venture will have to find its own solution.” (Ah, there’s the “Or else.”)

Recently, Sony had lowered its earnings estimate for the current fiscal year citing, among other things, the Ericsson joint venture. Reducing its forecast by a significant 17 percent, the company may be feeling increasing pressure from the venture’s underperformance.

About joint ventures, Stinger commented, “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.”