Friday, 26 October 2007

Siemens’ New CEO Unhappy JVs

German engineering and technology conglomerate Siemens is quite unhappy with its joint ventures with Nokia and Fujitsu. Siemens has a joint venture Nokia of Finland for making telecom gears and with

German engineering and technology conglomerate Siemens is quite unhappy with its joint ventures with Nokia and Fujitsu. Siemens has a joint venture Nokia of Finland for making telecom gears and with Japanese firm Fujitsu for making computers. This statement came in from the new CEO, who also announced a management shakeup.

The remarks came in from the new Chief executive Peter Loescher who also rumours that the century old diversified conglomerate might divest the lighting business, Osram, or its TS trains business.

"We are absolutely not satisfied with NSN (Nokia Siemens Networks),” Loescher said. He also spoke about the performance of computer venture Fujitsu Siemens. However he did not say whether Siemens wanted to get out of these businesses.

The German firm looks unlikely to be able to exit NSN, however, due to contractual terms that are understood to lock the firms into the agreement until 2013.

Nokia and Siemens was formed out of a merger between Siemens Networks and Nokia Networks Business Group, which was first announced last year.

Siemens has a very confusing leadership and management structure and making amendments to that, Loescher said the company would in future be aligned along its the three major businesses. The heads of these businesses would sit on the management board, he said.

The aim is to and give more power to the people running three big businesses –infrastructure/industry, energy and medical technology, he said.