SONY INCREASING PRODUCTION ABROAD
Sony Corp <SNE.T> will increase production
abroad to overcome falling profits caused by the yen's rise
against the dollar, managing board chairman Akio Morita told
the West German newspaper Die Welt.
    He was quoted as saying that Sony, whose latest profit
figures had been affected strongly by dollar fluctuations,
would increase production in the U.S. And Europe.
    Several production facilities were being built, he added.
"At the same time we are also investing capital in order to
modernise our locations and raise our productivity."
    Morita said that to overcome the same currency problems,
Japan needs to restructure its economy in order to live less
from exports and more from domestic demand.
    He said U.S. And European companies had made the mistake of
not investing enough in the future, which was why they had lost
their lead in consumer electronics.
    "They may spend a lot of money on research and development,"
he said. "But planning and marketing are very important sectors
in developing a marketable product."
    "If they don't spend money on these, they can't build up new
business lines."
    Speaking of difficulties foreign firms experience in
penetrating the Japanese market, Morita said "Naturally, I have
to admit that there are still many obstacles in Japan."
    On the other hand, many foreign firms were too interested
in short-term success, he said.
    "If, therefore, a company comes to Japan and wants to make a
profit at once on this market, it is not so simple."
    "These people then complain, while the successful firms keep
their mouths shut," Morita said.
 Reuter
