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What is happening at Leica?


rosuna

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New changes in Leica's management. I cannot fully understand why...

 

Bei der Leica Camera AG in Solms dreht sich das Personalkarussell in der Führungsetage. Jetzt legt der bisherige Aufsichtsratschef Dr. Wolf Schumacher sein Amt nach gut einem Jahr nieder. Der Nachfolger steht wohl schon fest:

 

Der scheidende Aufsichtsratschef Schumacher ist hauptberuflich Vorstandschef der Aareal Bank in Wiesbaden und seit April letzten Jahres Aufsichtsratschef bei Leica. Die Ad-Hoc-Mitteilung (PDF-Datei) benennt die Gründe für die Amtsniederlegung zum 31. August 2009 nicht. Als Nachfolger soll Franz Jung, ein ehemaliger Manager der Commerzbank aus München, berufen werden.

 

Kurz vorher war Wulf Matthias mit Wirkung zum 19. Juni 2009 aus dem Aufsichtsrat ausgeschieden. Seine Stelle hat Dr. Andreas Kaufmann, Geschäftsführer der ACM-Projektentwicklung GmbH, Salzburg, die Mehrheitseigner bei Leica ist, übernommen.

 

Bereits am 9. Juni 2009 hatte Vorstandsmitglied Stefan Trippe, verantwortlich für Entwicklung und Einkauf, aus persönlichen Gründen seinen Posten zur Verfügung gestellt, so teilte Leica damals mit. Der Vorstand wurde danach von vier auf drei Mitglieder reduziert, maßgebliche Aufgaben von Trippe übernahm Leica-Chef Rudolf Spiller selbst, der seit April 2009 Vorstandsvorsitzender ist.

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Looks positive to me. Dr Schumacher had the task of recruiting new blood into Leica's top management and that job is now done. The replacement has a long standing background in corporate finance which is probably wise.

 

The offical announcement thanks him for his outstanding contribution in a difficult economic situation. Leica may be having a tough time of it but others are doing worse. Did someone mention Porsche?

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The dpa-derived reports on the story take a negative view.

 

Apparently the dpa places it in the context of a "company facing a crisis" ("Beim kriselnden Kamerahersteller Leica..."), and the reports derived from their story run with titles like:

"Schumcher throws in the towel at Leica" (Optikhersteller: Wolf Schumacher wirft bei Leica hin | Frankfurter Rundschau - Hessen)--a story which also includes the term "management carousel" ("Personalkarussel"),

"Control Chief Jumps Ship; Leica in Rough Seas" (Kontrollchef geht von Bord - Leica in schwerem Fahrwasser - n-tv.de), and

"Chief of Oversight Board Won't Take it Any More" (Leica: Aufsichtsratschef will nicht mehr - manager-magazin.de).

 

Original story seems neutral or positive, but dpa's take on it doesn't.

 

Strictly in rumor department: An acquaintance sent me the following:

Within the last week or so, saw an E-Mail where a person with very good Solms connections said that Leica was asking the staff to forgo paid vacations and forgo the traditional Christmas bonus. This may truly be "make or break" time for Dr. Kaufmann and the Nouveau Leica.
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Haven't you noticed that there's a recession on? Life is very tough at the moment...

 

There are thousands of companies who are asking people to forego Christmas bonuses (we forewent ours LAST year). Everyone knows people that have been made redundant. I have a friend who has had two 10% pay cuts and no pay at all in August.

 

Doesn't mean that they won't be here in 3 months though.

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I think that is a very reasonable measure. These kind of payments have been ceased throughout a lot of companies in Germany in recent years. Even the civil servants do not get them anymore. Actually, I am surprised that Leica has continued up to now. If they would not see light at the end of the tunnel they had not increased their workforce by 5% in the last year.

 

Regards

Steve

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Haven't you noticed that there's a recession on? Life is very tough at the moment...

 

There are thousands of companies who are asking people to forego Christmas bonuses (we forewent ours LAST year). Everyone knows people that have been made redundant. I have a friend who has had two 10% pay cuts and no pay at all in August.

 

Doesn't mean that they won't be here in 3 months though.

 

Andy, I agree, these measures are "business as usual" in these rough times.

The financial crisis hits Leica very heavily: In times where they have to invest

huge amounts of money in order to get "connected" to the digital world major

markets are under massive pressure: US & Japan.

 

Everything (!) depends whether new product initiatives will generated planned

sales...

 

Let´s cross fingers...

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Strictly in rumor department: An acquaintance sent me the following:

a little bit more than just a rumour

Gießener Anzeiger - Leica-Mitarbeiter sollen das Unternehmen retten

Leica-Mitarbeiter sollen das Unternehmen retten

 

Vorstandschef Spiller beschreibt dramatische Lage - Jedem Beschäftigten Einsicht in Kassenlage geboten - Neue Profikamera kommt auf den Markt

...

Mit drastischen Worten hat Vorstandsvorsitzender Rudolf Spiller den Mitarbeitern in einer Betriebsversammlung die Lage von Leica geschildert. Um das Unternehmen zu stabilisieren, sollen die Beschäftigten auf Urlaubs- und Weihnachtsgeld im Gesamtvolumen von rund einer Million Euro verzichten. Um einen Vertrag dazu ringen derzeit IG Metall und Unternehmen. Nach Zeitungsinformationen bietet die Leica Camera AG den Beschäftigten eine Arbeitsplatzgarantie bis zum September 2011 an, wenn die Belegschaft auf tariflich festgelegte Zahlungen im Rahmen des Urlaubs- und Weihnachtsgeldes verzichtet.

.....

Deutlich wurde in der Betriebsversammlung auch, dass bei dieser Frage ein tiefer Riss durch die Belegschaft geht. Während die Gewerkschaft mit ihren rund 120 im Betrieb organisierten Mitgliedern eine Abweichungsvereinbarung vom Tarifvertrag aushandeln will, sind offenbar große Teile der Belegschaft bereit, auch ohne diesen Vertrag eine Verzichtserklärung gegenüber dem Unternehmen zu unterschreiben.

 

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Does not look good, and it appears the situation has deteriorated significantly since the full year results to 31 March.

 

To be clear, all of us who have an interest in Leica remaining a going concern have to support them in any way we can. We're not lining the pockets of some fat-cats, instead we're preserving some of the most unique skills in Europe. They make some of the best products in the industry and our photographic world would be a poorer place without them. They deserve our support.

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Does not look good, and it appears the situation has deteriorated significantly since the full year results to 31 March.

 

To be clear, all of us who have an interest in Leica remaining a going concern have to support them in any way we can. We're not lining the pockets of some fat-cats, instead we're preserving some of the most unique skills in Europe. They make some of the best products in the industry and our photographic world would be a poorer place without them. They deserve our support.

 

I am not so much worried about Leica, even in these difficult times. Heaps

of investors would hunt this company if it filed for insolvency; the latter would

not be the end for Leica, not at all.

 

However, I wish that Kaufmann has enough funds and a bit of luck to stand

through the current situation, he has already invested a lot. Hopefully this

will pay off.

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Here's the English press release:

 

Leica Camera AG: Franz Jung designated to succeed Dr. Wolf Schumacher on the

Supervisory Board of Leica Camera AG

 

At today’s Supervisory Board meeting, the Chairman of the Supervisory Board, Dr. Wolf

Schumacher, has informed the Board of Management and the Supervisory Board of the

Company that he will resign from his office as member of the Supervisory Board as of

August 31, 2009.

 

The Company will file a request with the competent court to fill the vacant Supervisory

Board position for the period until the next General Meeting by court order. Upon proposal

of the Board of Management, Franz Jung, Munich, is to be appointed new member of the

Supervisory Board. He looks back on a career of many years, holding leading positions at

Commerzbank, at first in Frankfurt and most recently as general manager of Commerzbank

Bayern in Munich. Mr. Jung’s professional focus was on corporate banking.

 

The outgoing Chairman of the Supervisory Board, Dr. Wolf Schumacher, had taken over the

office in April 2008 to support Leica Camera AG in its restructuring process, and

particularly in selecting new personnel for its top management; the positions have been

filled in the meantime. The Company would like to sincerely thank Dr. Schumacher for his

outstanding commitment in a difficult economic environment.

----------------------

 

Without downplaying Leica's probable financial difficulties, is it also possible that Leica asked employees to forego their traditional August vacations in order to get the S2 (and whatever else Herr Spiller has ordered up to keep the sales flowing) out the door on time over the next 8 weeks? And take time off (unpaid or otherwise) later in the year once 9/9 and 10/10 have passed?

 

As someone who is in his 4th month of permanent unpaid vacation (but trying to make the most of it) - I can sympathize with both the Company and the employees in these tough times.

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Andy and Andy--Yes, the economy is sour. Yes, Leica has been repeatedly pronounced dead for the past 40 years or so.

 

IMO, there's nothing negative in the Leica Ad Hoc. But as I said above, all the articles derived from DPA source frame the matter negatively. That's clearly from the DPA original since all use basically the same text.

 

That is: We've got a direct business-as-usual statement from Leica; and for some reason, the German Press Association has painted it negatively.

 

Rubén raised the question, "What is happening at Leica?" Facts are helpful in answering, speculation less so.

 

(OT: I do like the word kriseln, which is a verb made from the noun meaning "crisis." Literally, things are "crisis-ing" at Leica. I guess our nearest equivalent would be "boiling over.")

 

Thanks for the link, veraikon. It's good to see that German labor law covers such situations, and that Leica has till 2011 to smooth things out. Interesting, though, that "ein tiefer Riss durch die Belegschaft geht" because of the pay matters. I'm glad the personality problems with S K Lee are behind us, and that this disagreement comes with regard merely to financial matters and not philosophy.

 

One request: Please post a link when posting a quotation, just to be sure we're all working from the same page.

 

And a note to the financial papers: I'm tired of hearing that "Leica is in a crisis situation because it missed the transition to digital." Get a new copy-editor! They've been in a crisis situation ever since the original Leicaflex missed its mark, and worse again when the M5 fizzled. They're still around today, and my fingers are crossed for M9 and S2.

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Oops. Got ahead of myself. Personality and finances are as tightly linked as ever: The Gießener Anzeiger article, dated 29. August and linked to by veraikon above points out that the court case ended in June of this year with Leica having to pay Mr Lee an undisclosed amount in separation settlement.

 

Other points from the article:

 

Leica has offered to guarantee its current employees their jobs till Sept 2011, if they'll agree to the temporary vacation- and pay-cuts. IG Metall metalworkers union hasn't agreed and is still in negotiations with the company. But the company says the job guarantee offer is on the table only till 1. Sept, i.e. this Tuesday.

 

"I won't stand by and watch as the company slides off the cliff," Spiller told the assembled workers. He even offered them the opportunity to inform themselves directly at the comptroller's office and "see how much we've got in the bank now, how much is due next month, and how much in December."

 

Leica already has 50 orders for the S2 from the US.

 

Personal remark: Now don't go bad-mouthing it. Do you suppose Hasselblad ever had 50 pre-orders for an unshipped digital camera? We're talking brand new undertaking here from a company of recognized master craftsmanship.

 

Nicht nur die abblätternde rote Farbe am großen Leica-Firmenlogo an der Werkshalle machte deutlich, dass die Lage für Leica mehr als ernst ist.

'Not only the flaking red color on the big Leica logo in the works building made it clear that the situation for Leica is more than serious.'

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