Grundig AG is a German manufacturer of consumer electronics for home entertainment. Max Grundig established the company in Nuremberg in 1945, shortly after World War II.
The history of the company began in 1930 with the establishment of a store named Fuerth, Grundig & Wurzer (RVF), which sold radios. After World War II Max Grundig recognized the need in Germany for radios and in 1947 produced a kit, while a factory and administration centre were under construction at Fürth. In 1951 the first televisions were manufactured at the new facility with the company and the surrounding area growing rapidly. At the time Grundig was the largest radio manufacturer in Europe. Divisions in Nuremberg, Frankfurt and Karlsruhe were set up. In 1960 tape recorders were manufactured in Belfast, Northern Ireland, the first production by Grundig outside Germany.
Grundig Satellit 2100 radio receiver (early '70s)
In 1972, Grundig GmbH became Grundig AG. After this Philips began to gradually accumulate shares in the company over the course of many years until assuming complete control in 1993. Philips resold it to a Bavarian consortium in 1998 due to unsatisfactory performance. At the end of June 2000 the company relocated its headquarters in Fürth and Nuremberg, and Grundig took a loss of €1.281 million the following year. In the autumn of 2002, Grundig's banks did not extend the company's lines of credit, leaving the company with an April 2003 deadline to announce insolvency. Grundig AG declared bankruptcy in 2003, selling its satellite equipment division to Thomson. In 2004, England's Alba plc and Turkey's Beko Elektronik jointly took over Grundig Home InterMedia System (HIS), Grundig's consumer electronics division.
Grundig S-350 Multi-band Receiver
Currently, the British Alba/Beko consortium retain control of Grundig, although in the United States, products marketed under the Grundig brand are manufactured by the Eton Corporation (formerly Lextronix), based in Palo Alto, California. Vitelcom of Spain are also licensed to manufacture mobile telephones using the Grundig Mobile brand. Also, the auto parts company Delphi now manufactures car radios under the Grundig name.
In 2007 Grundig Mobile announced a Linux powered cell phone called U900.[1]
Koç Group to take over all shares in Grundig Multimedia B.V. Dr Michael Peterseim: “A clear commitment to Grundig”
Nuremberg, 18th December 2007: As of 18th December 2007, the International Koç Group will take over all shares of Grundig Multimedia B.V. (being the mother company of Grundig Intermedia GmbH). Grundig had been continuing its activities under the equal partnership of the British Consumer Electronics Company Alba plc. and the company Beko Elektronik since 2004. By taking over the Alba plc. shares, Koç Group, which is ranked among the 200 largest corporations in the world, underlines the general notion that Grundig is expected to see further positive development after its successful consolidation.
“With this step, Koç Group is demonstrating its great trust in our work and at the same time is making it clear that we are on the right path,“ Dr. Michael Peterseim, Managing Director of Grundig Intermedia GmbH comments the changes to the ownership structure. “Not much will change for us in our daily work, although we expect coordination processes to be smoother as we will have not two but one shareholder to agree with on strategies and action plans.“ Peterseim expects the full integration in Koç Group to result in further positive development for Grundig. “The Koç Group is one of the world’s 200 largest corporations and has great experience and strength in consumer electronics. Hence, it will be a strong partner for us. In my opinion, its engagement is a clear commitment to Grundig as it is a signal that this will not change in the foreseeable future.“
For Aka Gündüz Özdemir, Koç Holding President of Durable Goods Holding and Arçelik A.Ş. General Manager, the take-over of the Alba shares is a logical consequence of Grundig’s positive development in the past year. “Grundig is one of the first electronics brands that is recalled by consumers in Germany, Europe’s largest market. It is also one of our most valuable electronics assets. Growing with our own brands in the electronics sector is one of our most important strategies. We are certain of Grundig’s bright future as a German brand; thus, we made Alba plc. an offer to purchase its 50 percent in Grundig Multimedia B.V. I am pleased that Grundig will become an integral part of Koç Group and certain that both domestically and internationally it will generate profitability, efficiency and added value for us in the electronics sector. We shall continue to reposition the already well-known Grundig brand first of all in Europe and then around the world, making it a global brand in the consumer electronics industry.”
The positive growth of Grundig is an effect of the Grundig Plus program, which was started in 2007. The Grundig management board will stay on the beaten path. “We developed and implemented the Grundig Plus program in close coordination with both shareholders”, says Dr. Michael Peterseim. ”For the largest part, the measures have already been concluded or are being implemented as we speak. We agree with our shareholders that we now have the optimal foundation for an excellent future.“
This foundation also includes the heart of the Grundig brand – its own development and quality department and the company-own design in Germany. Grundig already has his own quality production facilities and don’t produce further with BEKO and other OEM partners, for their product line-up. Grundig will focus for the common years in the middle and high marktsegments and left the cheap productlines behind. “Grundig is and will remain a German brand“, emphasizes Michael Peterseim, ”that relies on great know-how for the product development and first and foremost caters to the requirements of the German and European markets. A fact that will not change in the future.“
Koç Holding A.Ş. (pronounced Kotsh) is an International Conglomerate of companies with more than 95,000 employees all over the world, an annual turnover of 34.5 billion USD (2006) and an export rate of approximately 30 percent. It is the only Turkish corporation on the Fortune Global 500 list (2006: rank 190) and makes up 12% of the overall Turkish export volume alone. The Conglomerate’s business includes activities in the automotive supply, household appliances, food, financial services, energy, information technology, tourism and construction sectors. The vision of Koç Conglomerate is; “to be one of the leading corporations of the world with rapid and consistent growth” and defines its strategies accordingly. Strengthening its position in global economy within years, Koç Conglomerate increased its export sales by 46% to USD 12.6 billion within the last five years.
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