DigitalHeMan Posted January 6, 2015 Share #21 Â Posted January 6, 2015 Advertisement (gone after registration) Thanks for the info, Jaap. I had assumed that the costs were being met directly by Leica, rather than coming out of one of Dr Kaufmann's other pockets. Given the low rate of German inflation reported yesterday (0.2% annually in December), the reason for the price rise is unclear. The recent decrease in the value of the euro will be beneficial to Leica as well, although that could not necessarily have been foreseen when the increases were planned. I would not be surprised if Leica's costs have gone up due to the move, so perhaps sales have not been sufficient to make up the difference? Â Â According to an article I read from around the time of the new factory opening, the new facility coat Leica 60 million Euros to build. It doesn't say where that money came from. Â http://www.amateurphotographer.co.uk/latest/photo-news/leica-opens-new-factory-in-its-former-home-in-wetzlar-5961 Link to post Share on other sites More sharing options...
Advertisement Posted January 6, 2015 Posted January 6, 2015 Hi DigitalHeMan, Take a look here Leica Price Increase in UK. I'm sure you'll find what you were looking for!
250swb Posted January 7, 2015 Share #22  Posted January 7, 2015 According to an article I read from around the time of the new factory opening, the new facility coat Leica 60 million Euros to build. It doesn't say where that money came from.  Leica opens new factory in its former home in Wetzlar - Amateur Photographer  It says it cost 60 million Euro to build, not that it cost Leica 60 million to build. With business development grants, regional tax deals and other incentives (as happens when any large business re-locates), together with spreading the remaining cost over many tax years it will not show as a 60 million Euro 'deficit' on the books at all, nor will Leica customers pay for it with 60 million Euro's worth of price increases in the coming year.  Steve Link to post Share on other sites More sharing options...
DigitalHeMan Posted January 7, 2015 Share #23  Posted January 7, 2015 It says it cost 60 million Euro to build, not that it cost Leica 60 million to build. With business development grants, regional tax deals and other incentives (as happens when any large business re-locates), together with spreading the remaining cost over many tax years it will not show as a 60 million Euro 'loss' on the books at all, nor will Leica customers pay for it with 60 million Euro's worth of price increases in the coming year.  Steve   Yes, of course. But it will certainly be hitting the books to some extent, and Leica will be expecting to offset that with increased revenues - otherwise they wouldn't have invested in the move. Link to post Share on other sites More sharing options...
CalArts 99 Posted January 7, 2015 Share #24  Posted January 7, 2015 I think the new building was built and funded by ACM Projektentwicklung GmbH (ACM are the initials of Andreas Kaufmann and his two brothers) which is now run and owned solely by Kaufmann (and renamed Austrian Capital Management after his brothers bailed out.) Kaufmann/ACM is the Leica majority stock holder of Leica. The two other buildings at the Wetzlar campus are Viaoptic GmbH and Weller Feinwerktechnik, which are also owned by Kaufmann/ACM and before his initial investment in Leica (details here: Interview with Leica’s Dr. Andreas Kaufmann | Film and Digital Times)  I remember reading somewhere that Leica leases the new facility from Kaufmann/ACM. So technically the money is from ACM and not Leica. I could be wrong but I think that's the financial situation.  EDIT: Sorry, I didn't read the first page closely... Jaapv already mentioned the ACM and Leica lease relationship (http://www.l-camera-forum.com/leica-forum/customer-forum/359154-leica-price-increase-uk.html#post2860756 )  This article also goes into it: Leica - 100 Years of Photography — Gentleman's Gazette   I imagine that the cost of leasing was already part of the business plan quite some time ago and has little to do with the price increases. Link to post Share on other sites More sharing options...
Jeff S Posted January 14, 2015 Share #25 Â Posted January 14, 2015 LR reports extending US discounts on the M and M lenses, and adding them on the MM, until March 31. Â Jeff Link to post Share on other sites More sharing options...
Seeingeye Posted January 14, 2015 Author Share #26  Posted January 14, 2015 LR reports extending US discounts on the M and M lenses, and adding them on the MM, until March 31. Jeff  LR is also suggesting that the US price increase for the M will not now happen, possibly due to the declining value of the euro against the dollar and slow sales.  Leica M 240 US price increase rescinded? | Leica News & Rumors Link to post Share on other sites More sharing options...
Jeff S Posted January 14, 2015 Share #27 Â Posted January 14, 2015 Advertisement (gone after registration) Obviously. The second article trumps the earlier one, and that's noted in the link I provided. Â Jeff Link to post Share on other sites More sharing options...
marknorton Posted January 14, 2015 Share #28 Â Posted January 14, 2015 Any information on what has become of the old factory in Oskar Barnack Strasse in Solms? Â It made sense to name the street that way when the Leica plant was at the end but not now. Link to post Share on other sites More sharing options...
Jennifer Posted January 16, 2015 Share #29 Â Posted January 16, 2015 Price increase or not, after the recent turmoil in the FX markets I guess Leica products will likely become a hell of a lot cheaper for those lucky enough to be earning Swiss francs. Link to post Share on other sites More sharing options...
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