Ericsson threatens to jilt Sony

Not happy with the way the relationship's going

Not happy with the way the relationship's going

Swedish telecoms giant Ericsson is preparing to stop producing handsets and end its joint venture with Sony unless the business manages to improve its fortunes - and fast. Just two weeks ago Ericsson said that it may have to pump a further E500m into the joint venture by October 2003 - a sum that would have to be matched by Sony. But now it appears to be on the verge of pulling the plug altogether. A spokeswoman for the company told Reuters: "The message is clear. We will not make the same mistake again. We will not put any more capital into the joint venture if it does not show results. This means unless its products quickly catch on."