Struggling Sony Europe appoints new president

Published Jun 8 2012, 13:39 BST  |  By Andrew Laughlin

Sony Europe has announced the appointment of Masaru Tamagawa as its new president, as part of a "transformation programme" being implemented across the struggling consumer electronics giant.

Tamagawa has been managing director of Sony India since 2007, where he helped guide Sony to the top share of the emerging Indian electronics market. Previously, he led Sony Gulf, based out of Dubai.

Current Sony Europe president Fujio Nishida will step up to become chairman of the group, overseeing a transformation programme being implemented across Sony's entire European consumer electronics operation.

Sony's share price slumped to the same level as 1980 on the Tokyo exchange this week, after the Japanese firm struggled to revive its flagging television business, or effectively compete in the mobile devices market with Samsung and Apple.

Earlier this year, Sony appointed Kazuo Hirai as its new president and chief executive, replacing Welshman Sir Howard Stringer, who had led the group since 2005.

Hirai, who was credited with driving success at Sony's PlayStation gaming line, announced plans in April to cut 10,000 jobs worldwide and slash the number of TV models Sony makes by 40% as part of a major restructure.

Tamagawa is known to be a key advocate of the 'One Sony' approach, bringing greater convergence across the company's entertainment and electronics businesses.

In a statement, Hirai said that Europe is "one of Sony's most important markets", and he feels that the management changes will put the business on the right track, despite ongoing fears over the Eurozone crisis.

"While the uncertainty around the Euro currency and economic instability have had a big impact on sales over recent years, Mr Tamagawa's unique expertise, drive and dedication to frontline sales and marketing operations will help us overcome the current challenging business environment, and put Sony Europe firmly on the path to the future growth," said Hirai.

"At the same time, Mr Nishida's considerable leadership and experience will ensure successful completion of the many vital transformation measures he introduced, as well as a seamless management transition."

Tamagawa added: "I look forward to facing the challenges and opportunities that the European market presents and to building consumer and customer confidence in Sony."