Siemens wants out of Fujitsu-Siemens - Says joint production unprofitable

By Examiner Staff @ Monday, July 14, 2008 9:29 AM

Section - PCs/Hardware

Siemens wants to pull out of a joint deal to make computers with Japan's Fujitsu because it is not making the outfit enough cash.

According to the Sueddeutsche Zeitung newspaper, the joint-venture contract expires in autumn 2009 and should renew itself for another five years, unless Siemens pulls the plug a year in advance. Whichever partner is left will have first refusal on buying the remaining stake in the company.

Sueddeutsche Zeitung cites sources saying that Siemens wants out of the arrangement, and will be warning everyone of its plans soon. Fujitsu Siemens has had a difficult second quarter, and has been battered by a weak dollar and a slump in computer and laptop prices. Siemens Fujitsu, created in 1999, is the last supplier of computers to still carry out manufacturing in high-wage country Germany. X

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